Because much of the loan process consists of the underwriting process, consulting a loan officer to ensure your qualifications before the actual loan submission will reduce the processing time. By providing accurate information about your income and assets situations and the necessary supporting documents at the initial application, you will get a loan commitment from the lender with little to no prior-to-settlement conditions that much sooner.
Depending on your unique application, the complete loan process can be finished within as little as a week or less. Please contact one of our mortgage professionals to receive an estimate on how fast we can get you the financing you need.
The process from initial appication to closing will take an average of 21 to 30 days, but exact time frame will differ on each individual loan. You may close much sooner or later depending on the type of documentation required by the loan underwriter.
The first step in the Home Loan Process should be the borrower assesing their financial and credit situation. This will give the borrower a good idea of what loan amount they can afford to borrow.
Expect to wait. It may take several days to a week to get the initial response from the underwriter. The underwriter will either approve the loan as it is or, more likely, provide a list of items that need clarification or additional documentation.
Working with an experienced, knoledgable and professional mortgage agent will make the home loan process much more pleasant. Such an agent will be familiar with the vast amount of lenders and loan programs and will have a relationship with such lenders that will allow your loan file to be processed in the most expediant manner possible.
Often times inexperienced or double dipping (Realty agents trying to make a second commission by doing the loan) mortagage agents will make errors in the submission of the file to the lender which could cause the loan to be delayed or declined.
The more documentation you can have ready prior to applying for a loan the easier it will be to process. Your last 2 years W-2s or 1099, 2 years tax returns, last 2 bank statements, last 4 weeks worth of pay stubs and statements of accounts such as 401K or money market accounts would be a good start. Also when you loan officer ask you for additional documentation, that faster you can obtain this and get it to your loan officer the faster the whole process will be.
The time frame for the loan process can be greatly reduced with your loan officer using automated underwriting and at times provide immediate approvals.
How Does The Loan Process Work - The very first step in the loan process is to get pre-qualified. This is very easy to do and can be done from the comfort of your own home. In the pre-qualification your mortgage broker will pull credit and ask questions pertaining to your income and mortgage/rental history. With this information the mortgage broker will be able to give you an idea of the programs that might be available for your situation and credit rating.
While the bank underwriter examines the loan application package, your mortgage broker would order title search on the subject home, if this has not already been done at an earlier stage. The title search process typically takes several days. When the title abstract becomes available, your mortgage broker reviews it to ensure the property is free of title defects and unexpected liens, then forwards the title report to the lending bank's closing agent. In states where the title agent is also the closing agent, this step is eliminated. With a clean title report, the title company issues a title insurance policy at settlement.
In certain states, an attorney's statement of title may supersede that of a title company.
Once you have signed all of the required documents and provided the necessary income & asset documentation(if needed) your mortgage broker will submit this info to the loan underwriter. At this time an appraisal may be done on the property being financed.
Be patient, sometimes someone loan will go really smooth. Other times it takes a little longer. The key is that sometimes it does take time.
Once the underwriter has looked at all of the paperwork sent in with the initial package, he or she will issue what is called a conditional approval. The loan officer or loan processor will contact the borrower, borrowers employer or bank to acquire any additional documentation requested by the underwriter. This paperwork will then be sent back to the underwriter for him or her to sign off on the conditions.
It usually takes a lender between 1-6 weeks to complete the evaluation of your application. It's not unusual for the mortgage lender to ask for more information once the application has been submitted. The sooner you can provide the information, the faster your application will be processed. Once all the information has been verified, the lender will call you to let you know the outcome of your application. If the loan is approved, a closing date is set up and the lender will review the closing process with you. And after closing, you'll be able to move into your new home.
When you go to your closing always remember a state issued photo ID.
After deciding on the loan program that's right for you, complete the Uniform Residential Loan Application with the help of your loan officer. To complete the loan package, you will be asked to sign all the necessary federal and state disclosure forms, and to supply all the income and asset supporting documents, such as pay-stubs and bank statements, if they pertain to your chosen loan type.