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Initial
Interview |
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After you
review your completed loan application and supplied the
information your "prequalification checklist", your loan
officer will pre-qualify you and discuss the various terms
available to you.
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Consumer
Disclosures |
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Usually within
three days of your initial interview, your loan officer will
furnish you with disclosures required by the
truth-in-lending and real estate settlement procedures
act. These will provide you estimates of the annual costs
of financing, as well as, the costs associated with
processing and closing your loan.
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Interest
Rate and Program Locks |
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Your loan
officer will explain the process of locking-in an interest
rate and program. You will be given the option of
locking-in a rate and program for a specified period of
time or "floating" until a later date.
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Processing,
Loan Submission and Underwriting |
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When your
credit report and appraisal are complete and the relevant
information is gathered from your employers, banks and
creditors, the loan package will be submitted to an
underwriter whose decision it will be to grant or deny
credit.
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Closing and
Funding |
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When your loan application has been approved, you will be
notified to schedule a day and time for signing the
closing documents at a title company. You will be asked to
provide a Property and Casualty Insurance Policy at the
time of closing, as well as, Flood Insurance Policy if you
home is located in designated flood zone. Funding of your
loan occurs when the closing office of the title company
disburses all funds to the proper parties. |
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What
impacts your loan? |
There
are five major areas which impact the decision
making process, they are:
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Cash Flow |
|
Credit Assets |
|
Income Stability |
|
Employment |
|
Property Appraisal |
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Delayed Funding |
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Your
funding may be delayed and subject to a three day
right of recession if your loan is an owner
occupied refinance. |
| |
|
Good
funds are required at time of closing. |
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