Page 8 - Home Buyer Guide
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BUYER’S HANDBOOK - THE LOAN PROCESS
THE LOAN PROCESS Step 1. The Application
While pre-approval of a loan puts you ahead of the game, you will still
formally apply for a loan once you find the right home and know the
exact selling price. Get ready for paperwork and lots of it.
Unless you are paying cash, closing on your dream home
requires successfully securing a loan through a reputable Step 2. Requesting Documentation
lender. Getting pre-approved before you start shopping The lender will want verification of your full financial picture including
helps move this stage forward by leaps and bounds. The employment, debt, assets, etc. They will also perform an appraisal on the
property.
lender you choose will guide you through the process but
we will remain fully engaged to ensure you understand Step 3. Loan Submission
everything along the way and that you’re getting the Once all the necessary documentation is in, your loan processor will put
support you need from the bank or loan provider. While the loan package together and submit it to the underwriter for approval.
the process will be customized to your individual financial Step 4. Loan Approval
situation, most loans follow a typical path. Upon receiving your submission, the underwriter will decide whether to
approve your loan and whether it’s a conditional approval. For instance,
additional documentation or explanations for things such as blemishes
on a borrower’s credit history may be requested.
Step 5. Documents are Drawn
After approval, the loan documents (including the note and deed of
trust) are completed and sent to the title company. You will then come
in to sign final documents and pay any required closing costs.
Step 6. Funding
The signed loan documents will be returned to the lender, who then
reviews the package. If all the forms have been properly executed, the
funds will be transferred by wire.
Step 7. Recording
When your title company receives the funds from your lender, your
escrow officer will authorize the recording of your signed documents
with the county recorder. The lender will then prepare a final settlement
statement, disburse the proceeds to the seller, pay off the existing
encumbrances and other obligations.
Step 8. THE KEYS ARE YOURS!
