How Does the Mortgage Loan Process Work?

Below is a summary of the mortgage loan process so that you will have a better understanding of what you can expect:


"Pre-qualification" occurs before the loan process actually begins, and is usually the first step after initial contact is made. In a pre-qualification, your Loan Officer gathers information about the income and debts of the borrower and makes a financial determination about how much house you may be able to afford. Different loan programs may lead to different values, depending on whether you are qualified for them, so be sure to get a pre-qualification for each type of program you are suited for.


A Mortgage Application is sent to you to start the loan process. After completing the Application and supplying all of the required documents for processing, various fees and down payments are discussed. Within three days, you will receive a Loan Estimate which itemizes the rates and associated costs for obtaining the loan.


After you have given us your approval to move forward with the loan, we will order a property appraisal, property background check, credit reports, and requests for employment, housing, and deposit verifications. All information supplied by you is sent secure and reviewed at this time. Then a list of items not yet received is compiled.

The "Processor" reviews the credit reports and verifies debts and payment histories. If there are unacceptable late payments, collections for judgment, etc., a written explanation is required. The processor also reviews the appraisal and survey and checks for property issues that may require further discernment.


The underwriter is responsible for determining whether the combined package passed over by the processor is deemed as an acceptable loan. If more information is needed, the loan is put into "suspense" and you will be contacted to supply more documentation. Once the underwriter has approved the loan, we are ready for closing!


At the closing, we "fund" your loan for you with a cashier's check, draft or wire to the selling party in exchange for the title to the property.


After the closing, your loan is submitted to an investor who will review the loan and request more information if needed. Once the loan is approved for funding, you will be receiving welcome packages within one to two weeks, providing more detailed loan payment information.

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