The first step is to speak with one of our licensed loan officers to determine your eligibility, most suitable loan type, and to answer any questions you may have. The application takes no more than 5 minutes over the phone and consists of:
- Full legal name
- Date of birth
- Social security number
- Current address
- Current employer
- Rate of pay
- Start date
- Desired purchase price
- Estimated down payment
Within minutes while on the phone your loan officer will have your credit report pulled up, debt to income ratio calculated, and be able to render an accurate decision as to your qualification and for how much. Your loan officer will also discuss estimated payment, down payment, and closing costs, all while answering any questions you may have. Pre-approvals are good indefinitely barring any major changes to credit and or employment. The credit report run in conjunction with the approval is good for 4 months.
Once you have an accepted offer you or your loan officer will forward the executed contract to your loan officer. Generally within 30 minutes our disclosure team will be on the phone with you to deliver your loan disclosures. The disclosures are approximately 30 pages and set up for e-signature so that you may read and sign electronically. Included in the disclosure package is your Loan Estimate form which has a full itemization of all fees, estimated payment, and terms set forth in your contract. It is at the time of disclosure that we also lock in your interest rate.
Once you have signed your disclosures your file goes directly to the processors desk. The processors job is to collect all documentation needed in order to prepare and submit your file for underwriting. It is also the job of the processor to request the appraisal and title work. Common documentation needed for underwriting:
- Most recent 30 days paystubs
- Most recent 2 years W2’s
- Drivers License & Social Security Card
- Most recent 60 days bank statements
**For most W2 borrowers these are all of the documents we need in order to facilitate your loan**
Depending upon the overall makeup of your file, some of the following items may also be requested:
- Divorce decree
- Child support order
- Retirement account statements
- Tax returns (only required if self employed, using rental income, or 25% or more of your income is derived from commission)
- Mortgage statement/Tax bill/Insurance bill (required when retaining properties you currently own)
- DD214 & Certificate of Eligibility (used for VA loans)
Upon receipt of these items your file is turned in for initial underwrite
Once you have turned in all necessary items to your processor, your processor submits your file to the underwriting department. The underwriters job is to review all documentation submitted and to render your approval. If there are any documents missing and or questions about documentation that has been submitted, the underwriter will “condition” for further documentation. This is known as a conditional approval, meaning your file has been approved, but the underwriter has requested further documentation to support the approval. We boast a 98%+ approval ratio from submission to underwriting approval. We strive to maintain a 24 hour underwriting queue. Upon completion of underwriting your processor will reach out request any conditions that the underwriter may have called for.
The underwriter has completed their initial review of your file and granted your conditional approval. At this stage the processor will reach back out to give you the good news that your file has been approved and to request the last conditions that the underwriter would like for the file in order to grant final approval. A few of these “conditions” are the appraisal, which generally takes 5-10 days to receive from the time it’s ordered, and the title commitment which generally takes 5-10 days to receive as well. Common conditions:
- Documentation for deposits that are not payroll related
- Letters of explanation for previous employment
- Explanation for gaps in employment
- Proof of clearance of earnest money
- Gift documentation when using a gift for down payment
- Election of a homeowners insurance provider (Provider is of your choosing)
Once you turn in these final conditions and the appraisal and title commitment are received your file is turned back in to underwriting for final sign off. We strive to maintain a 24 hour turn time for review of final conditions for final sign off.
Preliminary Closing Disclosure
Government rules require that you sign your preliminary closing disclosure no less than 3 business days prior to your closing. The day you sign the preliminary closing disclosure counts as a business day, as does Saturday. The purpose of the preliminary closing disclosure and the 3 day window to review is to disclose to you once again any and all fees associated with the transaction, estimated payment, and estimated cash to close, and to allow you ample time to review. The numbers on the preliminary closing disclosure are firmer than that of the Loan Estimate that comes as part of the initial disclosure package. At this time we have received the tax certification from the title company, taxes should be accurate to the penny. You have also elected a homeowners insurance provider and provided us with quote information, for that reason the homeowners insurance number is also accurate to the penny. The preliminary closing disclosure gives you an accurate indication as to payment and costs, however it is NOT (in bold) to be used for your final cash to close. Reason being the pre-paid interest along with tax proration credit has not yet 100% been calculated. This occurs when the title company and our closer “balance” the final closing disclosure. Balancing occurs once your file is issued the clear to close by the underwriter.
Clear to Close & Final Closing Disclosure
Appraisal is back, title commitment received from the title company, and you have turned in all of your conditions to the underwriter. At this point the processors turns your file back into the underwriter to review and sign off on the appraisal along with the final conditions. We strive to keep the underwriting queue at 24 hours or less for final review of conditions and issuance of your clear to close. In the majority of cases this underwrite results in the issuance of the clear to close, however in certain instances documentation submitted for review can lead to additional conditions. Once the underwriter does issue the clear to close your file goes to the closing department where final closing docs are drawn and the final closing disclosure is balanced with the title company. The final closing disclosure once again has a full break down of all fees with a breakdown of your final monthly payment. This final closing disclosure also has your cash to close figure down to the penny.
Closing takes place at the title company. The day of closing you may bring a cashiers check made payable to the title company for your cash to close figure, or wire funds directly to the title company. If wiring please be sure to call the title company for wiring instructions. The final loan documents you will sign at closing are very similar to the initial loan disclosures with some additional documents included such as the note. Most closings take place at the title company, but depending upon your circumstances and availability can also been done remotely by way of mobile notary. We fund all loans in the morning so that the title company may immediately disperse funds and consummate the transaction once both you and the seller have completed signing. Your loan officer will be available during your closing for any questions that you may have. Unless otherwise negotiated, you will receive your keys to your new home the same day of your signing. Your first payment letter is included in the closing package, giving instruction as to when your first payment is due. Mortgage interest is accrued in arrears, for that reason you will skip a months payment. As an example when you close in January, your first payment is not due until March 1st. Another example, close in June, first payment is not due until August 1st.