LOAN PROCESS
STEP 1 Pre Qualification- Knowing the range of what you want your future house payment to be is very important. By completing an application with a loan officer and receiving a pre qualification you can determine the price of home you wish to purchase. You want to make sure your pre-qualification is up to date before making an offer. It is not wise to rely on pre-approvals older than 30 days.
STEP 2 Gathering Documentation- The basic documents necessary to submit your loan normally includes your income information, rental history/mortgage history, credit information and the purchase contract. The appraisal and title work for the property does not always have to be completed for a lender to submit your loan. However there are a few lenders that may. During this phase you may be asked to pay for some preliminary services to start the loan process. Appraisals for the future property are most common. If asked to do so then always pay with a check or cashiers check from the bank and NEVER give cash. Always write the check out the company performing the appraisal. If asked to write a check out to the mortgage company then asked if the company has a trust account to deposit your money. This is required by federal law to protect you against people who take the money for themselves. Never write out a check to a loan officer.
STEP 3- Submitting your file- Your file should be reviewed by your loan officer to handle any possible problems that can be corrected before submitting your loan to the underwriter. Proper organization of your file and the experience of the loan officer are very important and will expedite the loan process. Once submitted the underwriter will give your loan officer an approval based on certain conditions to be met.
STEP 4 Clearing your conditions- Once the lender has sent your loan officer your conditional approval, these conditions must be met before you can close on your home. These conditions can take time to clear depending on what they may be. Typically the two most common reasons for delays are because of title and/or condition of property. Generally a home loan can closed within 30 days.
STEP 5 Pre Closing- Once the major conditions have been signed off by the lender’s underwriter then actions must take place to prepare for close. The most common actions are making sure all documentation in the file is up to date, check for State and Federal compliance issues, and making the arrangements with all parties included in the loan process. If there are any changes to your loan then the loan officer is required to inform you about them before closing your home loan not during.
STEP 6 Closing- If you are kept well informed of the entire process then closings are exciting and fun. Your loan officer should review your terms with you again before you close to prevent any misunderstandings. If any unforeseen costs arise, then you should have been informed about them before you go to the title company to close.
Understanding the process of a home loan will drastically decrease any stress you may encounter will buying a home. Having a loan officer that keeps you informed on the process decreases the chance of any surprise. Remember never to pay cash for anything in the loan process, use a personal check or cashiers check. If you do not have a bank account then simply go to any bank and have them convert your cash to cashier’s check that can be written to a specific company or an individual that is completing a particular service. This applies to all aspects of the process, the real estate, the home inspections, appraisals etc.
Our company is committed to helping any person or family buy the homes of their dreams. We hope that if you have any questions about the loan process, credit, or any aspect about the loan process that you will give us a call.
Darin Darling
14916 S Western
Oklahoma City, OK 73170
(405) 799-2033
(405) 799-5054 fax
(405) 408-8341 cell
darin@brennermortgage.com