The Loan Approval Process PDF Print E-mail

STEP 1: The Application

At this time, we make every effort to obtain all pertinent documentation so unnecessary problems and delays may be avoided.

STEP 2: Ordering Documentation

Within 24 hours of application, we request a credit report, an appraisal on the property, verifications of employment and funds to close, mortgage or landlord ratings and any other necessary supporting documentation.

STEP 3: Awaiting Documentation

As we receive the supporting documentation, we check for any problems that might arise and request additional items we need. During this time, we keep the applicant and the realtors informed as to the loan’s progress through weekly status reports.

STEP 4: Loan Submission

Once all the necessary documentation is in, the loan officer reviews our current programs to insure our clients the best rate and terms. The loan processor then puts the loan package together and submits it to the underwriter for approval.

STEP 5: Loan Approval

Loan approval generally takes anywhere from 24 to 72 hours. All parties are notified of the approval and any loan conditions that must be received 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 the loan approval, the loan documents (including the note and deed of trust) are completed and sent to the title company. The escrow officer calls the borrowers to come in when the papers are ready for final signature. At this time, the borrowers are told how much money they will need to bring in to close the loan.

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, the check is issued to fund the loan.

STEP 8: Recordation

When the title company receives the funding check from the lender, they make the lender’s security for the loan a matter of public record. They do this by recording the note and deed of trust at the county recorder’s office. Escrow is now officially closed!