What to Expect in the Loan Process
While shopping for a new home or deciding to refinance can be exciting, the mortgage process can be overwhelming. Understanding each step of the loan process can help your experience go more smoothly.
Once you've completed your loan application, here's what you need to know about the next steps:
1. Initial Application
After your loan application is reviewed by a Loan Officer, the Disclosure department will generate the Loan Estimate along with other initial disclosures for execution.
2. Gathering of Loan Documents and Requesting an Appraisal
Your Loan Officer will gather the documents from you that are needed for your loan program and will process the loan. If applicable, an appraisal will be requested and obtained to determine the home's value.
3. Locking Your Loan Rate
Your Loan Officer will review rates based on your loan program to help you determine when the best time to lock your rate in. Once your file has been locked, an updated Loan Estimate with the locked rate information will be provided.
4. Conditional Loan Approval
The Underwriting department will issue a conditional loan approval. This means that your loan has been approved, but there are still a few conditions that need to be met. Your loan team will review said conditions with you.
5. Initial Closing Disclosure Request
Your loan team will now request the Initial Closing Disclosure to be issued. The Initial Closing Disclosure is an estimate of what the actual fees will be once you are ready to close.
6. Satisfy Conditions
The Loan Processor will work with you to satisfy the conditions given from the Underwriting Department’s Conditional Loan Approval, which may include additional documentation and/or clarification.
7. Waiting Period Expires
After you receive your Initial Closing Disclosure, you must wait at least three business days (which is Monday-Saturday and excludes Federal holidays) before the loan can be closed. After those three days, the waiting period will expire.
8. Clear to Close Issued
The Underwriter will issue the final loan approval. This means that the remaining underwriting have been met, which provides the clear to close.
The Closer releases the final loan documents, including Final Closing Disclosure. The Final Closing Disclosure will be reviewed with you by your loan team. The closer will review and clear all the final funding conditions and will wire the funds to title for disbursement.
The important thing to remember throughout this process is that you’re not alone. Your Loan Officer will be there to guide you along every step of the way. To learn more about this process, connect with one of our Loan Officers today!
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