Or, Why Can’t We Close Tomorrow?
The loan approval process has been organized into distinct stages.
Stage 1 – Strategy (time needed: 5 minutes to 2 hours)
You and your Loan Officer set the strategy and select the type of loan best suited to your needs. We can help you evaluate the best use of your money over some specific period of time.
NOTE: We offer one-hour loan approvals. It’s a very useful option. Ask us for the details.
Stage 2 – Processing (time needed: 15 minutes to 15 business days)
A completed loan application on the Internet is the shortest route to quick loan approval.
The completed loan application and supporting documentation is prepared for submission to the Electronic Loan Approval System or to a live Underwriter for loan approval. Our loan processor verifies the strategy that you have set with your loan officer. We check credit, funds to close, and employment history.
An appraisal of the market value of the home is ordered from a licensed appraiser.
A delay in getting the appraisal to us can cause a delay in closing. The listing real estate agent or the home-owner will be contacted for the appraisal appointment.
If something comes up that does not fit our strategy, or if anything appears different than we expected, we will contact you by phone or eMail and together we will address the issue.
Stage 3 – Underwriting (time needed: 15 minutes to 5 days)
The loan has been registered with the lender and the rate may have already been locked. The electronic system underwrites loans within 15 minutes. The live underwriter can evaluate about one loan every 60- to 120- minutes. In a typical 8-hour day, 10 loans is quite a load. There is usually a waiting list of files to be underwritten. If the underwriter needs clarification, we will get a phone call. If we need help in answering the underwriter’s question, we will call you.
Those loans that require mortgage insurance (PMI) will also be underwritten by the PMI company after the lender’s underwriter approves the loan. If the loan to value ratio (LTV) is greater than 80%, PMI is usually required.
Stage 4 – Closing Preparation (time needed: 45 minutes to 3 days)
The closing department draws the check for the loan amount and prepares instructions for the closing attorney or title.
Stage 5 – Closing (time needed: 45 minutes to 2 hours)
The closing package arrives at the attorney’s office. The closing attorney’s office has already checked for a clear Title to the property (going back 60 years), and ordered the survey. They check the closing instructions, and prepare to transfer title to you. We arrive at the attorney’s office, and it usually takes about 45 minutes to go through the closing documents and actually transfer title to you. This is “the closing”, and it is when you hand the certified check to the attorney (usually for PURCHASES only). The check must be accurate to within about $4,000. The message is: bring certified funds, made payable to yourself, for some round number, approximately what was estimated on the Good Faith Estimate.
Feel free to contact us if you have any questions about processing your loan.