Learn About Mortgage
Loan Process for Lenders
- The Application: The key to the loan process.
Using verifiable information you provide us, we work to obtain approval
of your purchase loan.
- Ordering Documentation: We order a
full credit report, verification of employment verification of funds
to close, mortgage or landlord ratings, and any other necessary supporting
documentation. If you have a property already identified then an appraisal
report is ordered and a preliminary title report is requested as well.
- Good Faith Estimate and Truth In Lending Disclosure: We are required to prepare for you a Good Faith Estimate and Truth In
Lending Disclosure within 3 days of the application submission.
- Loan Processor and Loan Submission: After receiving the necessary supporting documents, the loan processor
works to verify and reconcile the information and assure that the application
- Loan Submission: If the loan package is complete,
the Loan Processor submits to the underwriter for approval. The underwriter
reviews your credit payment history and credit score, job stability,
income ratios, down payment, closing cost, cash reserves and property
- Loan Approval: Once the loan is approved,
we are ready to close escrow providing the property is ready and has
met the terms of the sale contract. At this time escrow is informed
of the loan approval status.
- Funding: After all parties (You and the Seller)
have signed the closing documents, they are returned to the to the lender
for review of the complete package. If there are no further issues,
then funds are wire transferred to escrow allowing completion of the
- Recordation: When escrow receives
the funds from the lender, the necessary documents are delivered to
the county recorder's office. Recording is the time that your purchase
is complete. All funds distributed to the involved parties and escrow
is officially closed.
- You now own your new home.
- The property is the security for the loan. The lender will require
an appraisal by a certified fee appraiser to assure that there is sufficient
collateral. The underwriter will look for marketability, condition and
value of the home.
- Most loan programs require that funds be or must have been in your
account for 3 months. A minimum of 5% down payment usually needs to
be your own funds. The remainder can be a gift by a relative, providing
a gift letter and bank statement showing the ability to give is also
- Income ratios are based on your gross monthly income (before taxes).
Bonuses, overtime, part-time or self-employment income must be likely
to continue and is averaged over the last two years. The Principle,
Interest, Taxes, and Insurance (P.I.T.I.) (plus Mortgage Insurance if
applicable) is divided by the gross monthly income to get the top ratio.
Take the PITI and all debts are added together and divided by the gross
monthly income get the bottom ratio. Ratios needs vary based on the
Loan To Value (LTV) or how much down payment is made.
- Special programs can allow you to purchase with very little money, less than perfect credit, and income that is not verified.