The Loan Pre-Approval
- It is a good idea for the buyer to get pre-approved for a home loan before
submitting an offer.
- This pre-approval can be done via the phone, e-mail, or in a meeting .
- A pre-approved loan can save uncertainty, anxiety, and disappointment in
the knowledge that you can afford the home you are making the offer on. It
also shows you the price range of the house you should be looking at.
- If there are other offers on a home, it could improve your chances of
yours being accepted.
The Loan Application
- The Borrower provides financial information such as employment
information, monthly bill payments, savings balances and other assets to a
Loan Officer.
- A loan program is chosen that best fits the borrower's needs.
- The Loan officer provides an analysis of the mortgage payments, down
payment, and closing costs for the chosen loan program.
Verification Of The Information
- Verifications of employment, bank accounts and Credit reports are
requested by the mortgage company.
Approval Request
- The loan is sent to underwriter for review. This occurs after all
documentation is received and the loan file is complete.
Credit Approval
- Borrowers maximum loan amount is identified. The upper boundary of the
sale price is then set.
Find A Home, sign a Purchase Agreement
- The offer to buy is submitted.
- Seller accepts the offer.
Purchase Appraisal, Title Search, And Escrow Account
- The Loan Officer gets an appraisal to determine the value of the property.
- A Title search is conducted to determine any liens or encumbrances on the
property.
- An escrow account is opened.
Final Review
- The "credit package" and the "property package" after
completion are sent to the underwriter for final review.
Final Loan Approval
- A written loan approval is issued by the underwriter.
- The request for the closing documents are made.
Closing
- The closing documents are forwarded to the escrow company.
- The escrow company completes part of the closing document.
- Appointments are made with the buyer and seller for the signing.
- Documents are recorded.
- The title to the property get transferred to the buyer.
The buyer moves in.
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