The Loan Process

Prequalification

Prequalification occurs before the loan process actually begins. The lender gathers information about your credit, income and debt and makes a financial determination about how much house you may be able to afford.


It's a good idea to know how expensive a home you can afford before you start shopping for one! If you are refinancing the loan on your existing home, then the prequalification process should help you decide whether refinancing is a good idea for you.
 

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Application

The application is the beginning of the loan process and either occurs before you begin shopping for a property you want to buy or have determined that you wish to refinance the loan on your existing home. You complete a mortgage application for a particular loan program and supply all of the required documentation for processing. Various fees and down payment options are discussed at this time. The loan officer will deliver a Good Faith Estimate (GFE) and a Truth-In-Lending Disclosure (TIL) within three days that itemize the rates and estimated costs for obtaining the loan.

 

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Processing of your Estimated Loan

We will submit the application package to an automated underwriting system that will provide the lender with the necessary documentation needed for loan approval.


Our office reviews the credit reports and documentation to verify your employment, debts, and payment histories. If there are unacceptable late payments, collections, judgments, etc., the processor requests a written explanation from you. The processor also reviews the appraisal and checks for property issues that may affect final loan approval. The processor's job is to put together an entire application package for the lender's underwriter.
 

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Underwriting

The lender's underwriter is responsible for determining whether the application package prepared by the processor meets all the lender's criteria. If more information is needed, the loan is given a "conditional approval" and you will be contacted by us for the additional documentation required by the lender.  Conditions to the lender's commitment may include issues with credit, income, or the property that may arise during the processing and underwriting process.
 

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Closing

The closing will occur after all conditions are cleared and the lender issues a full loan approval. At the closing, the lender "funds" the loan with a wire to the closing agent who disburses funds in exchange for the title transfer to the property. This is the point at which you finish the loan process and actually refinance or buy the house.


 

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Email Us: tim@peakfinancial.org