Fill out the online application. You will include income, employment and credit information about yourself and the co-borower if there is one. Depending on the loan you are applying for some of them will order a credit report and some wont. A loan officer will contact you to go over your application. Will go over your income, liabilities and let you know exactly what you qualify for. At this stage its only preliminary based on the application.
Loan officer reviews the application to see what programs you will qualify for. He will search multiple loan programs to find the best loans options for you. He will also be talking with the underwriters to see what requirements will need to be met in order to secure the loan. The loan officer will then contact you to review your application. They will discuss your goals and match the best loan program to what you are trying to accomplish.
After the review is completed an approval is issued. This means you have passed the preliminary requirements to secure a loan. This is not a loan commitment for a final approval. Those are the next steps to come. A letter of credit approval is issued to you. This will tell you how much you qualify for, what the interest rate should be, how much your payments are and if there is any out of pocket expenses.
We will gather documents from you to prepare the loan for underwriting. You will submit income documents such as tax returns, W-2’S, pay stubs, bank statements. Some programs do not require income verification so please get advice from your loan officer. A loan application is prepared and sent to you for singing. Your loan file is prepared with all of your documents and submitted to the underwriter for loan commitment request. Here the underwriter reviews the file and will issue a pending loan commitment. Next, we satisfy the items they will need for closing. An appraisal and title opinion are ordered.
Once everything has been satisfied and the underwriter is finished reviewing the loan and everything is in compliance they will issue a clear to close. Only the underwriter can issue the closing. A Realtor nor a loan officer has the authority to issue a closing. They can only give you an estimate of closing. You will go to closing generally at a title company or abstract office accompanied by an escrow officer or real estate attorney. Here they will review the final closing documents with you for signing. You will sign the closing documents and your loan will fund.