Your loan process should go smoothly if you complete your loan application properly and provide all necessary documentation to your loan officer at the time of application.
Your loan officer will order the necessary documentation for the loan as soon as it is received. Any verification will be mailed, and the credit report and appraisal will be ordered. You will also receive a Good Faith Estimate of your costs and details of your loan.
Within approximately two weeks, all necessary documents should be received form your loan officer. Each item is reviewed carefully in case additional items may be needed from you to resolved any questions or problems.
Submitting your loan is a critical part of the process. All of the necessary documentation will be sent to the lender, along with your credit report and appraisal.
Loan approval may be obtained in stages. Usually within one to three days, your loan officer should have a pre-approval from the lender. If the loan requires mortgage insurance, or if an investor needs to review the file, final approval could take additional time. You do not have final loan approval until ALL of the necessary parties have underwritten the loan.
Lender Preparation of Documents
As soon as the loan is approved and all requirements of the lender have been met, the loan documents will be sent to the escrow officer, and you will be asked to sign the documents. Your lender may require an impound account for tax installment payments, depending on the type of loan.
Once you have signed the documents and they have been returned to the lender, the lender will review them and make sure that all conditions have been met and they will “fund” your loan. (“Fund” means that the lender will give the title company the money by check or wire.)
When the loan has been funded, the title company will record the Deed of Trust with the county in which the property is located. Upon receipt of the confirmation of hte deed being recorded, title or escrow will then disburse monies to the appropriate parties. At this time, in most cases, your loan is considered complete.