THE LOAN PROCESS
STEP 1: The Application
The key to the loan process going smoothly is the initial application interview. At this time, the lender obtains all pertinent documentation so unnecessary problems and delays may be avoided. The REALTOR opens escrow with the title company at this time as well.
STEP 2: Ordering Documentation
Within 24 hours of application, the lender requests a credit report, an appraisal on the property, verifications of employment and funds to close, mortgage or landlord ratings, a preliminary title report and any other necessary supporting documentation.
STEP 3: Awaiting Documentation
Within one or two weeks, the lender begins to receive the supporting documentation. As it comes in, the lender checks for any problems that might arise and requests additional items needed.
STEP 4: Loan Submission
Once all the necessary documentation is in, the loan processor puts the loan package together and submits it to the underwriter for approval.
STEP 5: Loan Approval
Loan approval generally takes anywhere from 24 to 72 hours (two to three business days). All parties are notified of the approval and any loan conditions that must be received before the loan can close. The loan approval is the beginning of the closing process.
STEP 6: Documents Are Drawn
Generally, within one to three days after the loan approval, the loan documents (including the note and deed of trust) are completed and sent to the title company. The escrow officer calls the borrowers to come in when the papers are ready for final signature. At this time, the borrowers are told how much money they will need to bring in to close the loan.
STEP 7: Funding
Once all parties have signed the loan documents, they are returned to the lender who reviews the package. If all the forms have been properly executed, the funds are transferred by wire.
STEP 8: Recordation
When the title company receives the funding check from the lender, they make the lender's security for the loan a matter of public record. They do this by recording the note and deed of trust at the county recorder's office. Escrow is now officially closed.
