The first step – the loan application:
As might be expected, the first step in getting a loan is to fill out a loan application (also called a “Fannie Mae 1003″, or “Uniform Residential Loan Application”). Our experienced loan officers will be happy to assist you in filling out the application, or answer any questions so that you can obtain the best mortgage for you. They can also make an appointment to meet with you at your convenience if you desire.
Whether you choose to meet with us in-person or fill in our online application, you will eventually need to provide us with some personal and financial information (see our Loan Checklist). If you are unable to provide some of the required documents, you can provide them to your loan officer at a later date. (Note: the area in yellow currently is not linked)During the application discussion, your loan officer can help you understand the different types of loans that may be suitable for your situation, including the benefits of fixed-rate and adjustable-rate loans, FHA or VA loans, Conventional and Jumbo loans.
Do I have to meet in your office?
No, it is possible to complete the loan process without attending a meeting in our office. This can be done by doing one of the following: filling out our online application on our site, having the loan officer fill it out for you by telephone, or fax you a blank application which you can fill out by hand and return.
During our conversation, we will discuss different possible loan programs available to you that might best meet your needs, current interest rates available, and your qualifications for the loan program you’ve chosen. In anticipation of this call, please feel free to use our mortgage calculator to estimate a monthly payment based on the loan you think you will need.
After I fill out the application, what happens next?
Once you have chosen a loan program, and have provided the necessary documentation to support your income and assets, the application is completed and we will then send verification forms to verify your employment history and bank account information, obtain your credit report, order your preliminary title report from the title company and order your property appraisal. Once this information is returned to us, we will complete your loan submission documents and submit the file to the underwriter for approval.
What does it mean when my loan is approved “with conditions?”
Your loan may be approved as submitted, approved with conditions, or a counter offer may be made for your consideration. If there are conditions to the loan approval in order for it to be approved, our loan officers will work with you to satisfy these conditions. Conditions might include explanation letters, copies of financial documents, divorce papers, or any number of items that will clarify your qualifications for the loan.
After the loan conditions are met (if any) and the loan is approved, the necessary documents are prepared for closing. The lender will draw up the necessary documents along with any (prior-to-funding) conditions that have yet to be met, and in most cases send them to a title or escrow company near to where you live or your attorney to be signed by you. Your escrow officer or attorney will arrange for an appointment with you when the loan papers are ready to be signed.
What does “Close Escrow” mean?
The task of closing the loan is normally the responsibility of the escrow officer, attorney, or lender, depending on the state the property is in and the customs in the area. This person or company is responsible for gathering together all of the necessary documents (deed of trust, promissory note, etc.) and making sure all documents are signed. Following the lenders instructions, the escrow officer, attorney or lender then calculates the various pro-rations, charges and adjustments (interest on your old loan, interest on your new loan, money for impound accounts for taxes and insurance, etc.), makes sure all of the funds are deposited (if any) and provides you with a HUD-1 settlement statement showing all of the costs involved in the loan. Whoever handles the escrow responsibilities also makes sure that all of the parties involved in the loan process are paid after the loan funds by your lender. At this point, your loan “closes escrow” and your new loan will be recorded.
What is a “Right of Rescission?”
After you sign the documents at closing, they are sent by the escrow officer to the lenders funding department where they do a final check to see that everything is in order. On a refinance transaction, there is a 3-day right of rescission period. This means that you have 3 days from the day you sign the papers to change your mind about following through with the loan. If you have not exercised your right to rescind during the 3-day right of rescission period, the loan funds are released, distributions are made to the proper parties and the documents are recorded at the county recorder’s office. The loan is done!
NOTE: There is no right of rescission on a purchase.