To start the loan process, all we need is an application and a few documents to verify income and savings or other sources of funds for your down payment. Once we have a complete application, it usually takes 7 to 10 business days to get your loan fully approved. Our goal is to present the best possible financial "picture" that we can to the underwriter. Having many different lenders to choose from also means we have more flexibility in getting loans approved at the best terms available.
Soon after the loan application, you will receive a document called the "Truth-in-Lending" statement which may be confusing. It will have an estimate of the yield the lender will make on the loan for the first year, called the Annual Percentage Rate (APR), which includes certain closing costs. This is NOT the interest rate on your loan, so don't panic when you see it.
Mortgage interest rates change daily and are affected by economic factors just like any other commodity. We monitor several sources of information on market trends; however, the ultimate decision when to lock your mortgage rate must be yours. You can choose to "float" the mortgage rate (i.e., not lock-in the rate) until 3 business days before the closing. Like the stock market, you should try to get close to the bottom of a down cycle in rates, but do not expect to hit the exact bottom.
The title company (or attorney's office) where the actual signing of closing documents will take place is researching the property records to ensure the home you are buying is free of adverse liens or judgments against it.
We will select an independent appraiser to inspect, measure and photograph the property you have purchased. The appraisal should not be confused with a property inspection that you may want to have done outside the loan process. The appraiser will do a market research on recent sales of comparable properties to determine its value. If there are repairs required by the appraiser or if the value is less than the sales price, you will be advised immediately. The underwriter reviews this appraisal as part of the loan decision.
If an old survey is not available, or if a new one is required, a survey crew will be sent to the property to find and mark the boundaries of the lot. At closing, you will receive copies of the survey showing the dimensions of the lot, location of the house and structures of the property, and easements of record.
Your application will be entered into our system, income and assets to close verified and a final credit report done. The complete credit file, with a summary of income-to-debt ratios and the appraisal, will go to the underwriter who reviews the file and makes the final loan decision. If there are conditions required by the underwriter for loan approval, you will be notified immediately.
Estimates noted in parenthesis are business days and assume that all required documents are received within 48 hours of initial application.
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