The loan process begins with you and your Mortgage Consultant discussing the best home financing choices to meet your needs. After you have applied and become pre-approved, your loan file will move through the process of becoming a closed mortgage loan. Some of the factors that are considered in the loan process are explained here.
Processing Your Loan
The processing of your loan involves collecting documents needed to satisfy conditions necessary to issue a loan commitment. These conditions could include: verifying your income and assets, reviewing the Real Estate Purchase Agreement, verifying the appraisal, obtaining information or documentation to substantiate past credit issues, child support/alimony payments, receipt of gift funds, employment and other needed information.
Underwriting Your Loan
There are some standard factors underwriters consider when approving your loan application. We call these factors the 3 C’s of Mortgage Lending.
- Credit - Past credit history is evaluated for timely payment of obligations. Credit scores are also evaluated and play a part in determining your interest rate.
- Capacity – Income and debt structure are evaluated to determine ability to pay the loan as part of a smart monthly budget.
- Collateral - The subject property is used as collateral against the loan. An independent appraisal report is prepared and reviewed to determine marketability and value of the subject property.
Your Loan Settlement
The settlement process completes your mortgage transaction. Your Mortgage Consultant and Real Estate Professional will tell you exactly what to bring with you and the title officer will explain every document that you sign. The title officer will also provide wiring instructions for settlement fund amounts and documentation.
Required at Settlement:
- Current Photo I.D.
- Proof of wire transfer funds for closing and settlement
Funding and Recording
This is the final step in the settlement process. Your title officer will inform all parties involved when the process is complete.
