Ready To Buy A Home

Who’s Who In The Transaction

Life Of A Purchase & Sales Transaction

Title Insurance

What is Escrow

Inspection Process

Who Pays What?

Financing

The Loan Process

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Step 1 – The Loan Application. The key to the loan process going smoothly is the initial 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 new property, verifications of employment and funds to close, mortgage or landlord ratings; a preliminary report and any other necessary supporting documentation.

Step 3 – Awaiting Documentation. Within 1-to-2 weeks, the Lender begins to receive the supporting documentation. As it comes in, the Lender checks for any problems that might arise and requests any additional items needed.

Step 4 – Loan Submission. Once all the necessary documentation is in, the loan processor assembles the loan package and submits it to the underwriter for approval.

Step 5 – Loan Approval. Loan approval generally takes 1-to-3 days. All parties are notified of the approval and any loan conditions which must be cleared before the loan can close. The loan approval is the beginning of the closing process.

Step 6 – Documents are Drawn. Within 1-to-3 days after loan approval, the loan documents (including the note and deed of trust) are completed and sent to the escrow holder. The escrow officer will make an appointment for the borrowers to sign the final documents. At this time, the borrowers are told how much money they will need to bring in to close the loan. Payment must usually be made by a cashiers check.

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, a check is issued to fund the loan.

Step 8 – Recordation. Upon receipt of the loan funds, the title company will record the legal documents necessary to transfer the property into the Buyer’s name. At the same time, the deed of trust is recorded to how the new loan on the property. Escrow is now officially closed and you now own your home. Please consult your Mortgage Consultant for more detailed information regarding your loan.