Page 5 - FOR Buyers Guide

BUYER’S HANDBOOK - THE LOAN PROCESS
THE LOAN PROCESS
Unless you are paying cash, closing on your dream home
requires successfully securing a loan through a reputable
lender. Getting pre-approved before you start shopping
helps move this stage forward by leaps and bounds. The
lender you choose will guide you through the process.
We will remain fully engaged to ensure you understand
everything along the way and that you’re getting the
support you need from the bank or loan provider. While
the process will be customized to your individual financial
situation, most loans follow a typical path.
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.
Step 2. Requesting Documentation
The lender will want verification of your full financial picture
including employment, debt, assets, etc. They will also perform an
appraisal on the property.
Step 3. Loan Submission
Once all the necessary documentation is in, your loan processor
will put the loan package together and submit it to the underwriter
for approval.
Step 4. Loan Approval
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!