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Application
After deciding the right loan structure, making a loan application is the next step. We run a credit report so we can determine your open accounts, current liabilities and accurately determine your qualifying ratios. We document your employment, income, and residency history, as well as the pertinent details in regard to the property in the transaction.
Depending on the loan type, different levels of documentation will be required. As a guideline, the following items will be needed in most Full Documentation loans:
- Last 30 days of paycheck stubs
- Last 2 years of W2's (and in some cases, 2 years of tax returns)
- Last 2 months of bank account statements
- Last 2 statements from your 401-k, IRA, or retirement account
- Most recent mortgage statement (if a refinance or equity loan)
- Proof of insurance on the property (declarations page or renewal notice)
- If a cash out loan, a letter explaining the planned use for the proceeds.
Keep in mind that self-employed persons, family owned businesses, and commissioned employees may require greater documentation, including 2 years of tax returns with all schedules, corporate tax returns, and Profit/Loss statements.
Upon completing the loan application, we submit it to our computerized underwriter for analysis. Shortly thereafter the system returns the result on the submission that outlines the terms and requirements that need to be met for the loan to be approved - this is called a conditional approval.
It is important to note that a conditional approval is based on the estimated value being supported by an appraisal, the borrowers' income being supported by income documentation, and a successful verification of employment during the loan processing stage. If an applicant omits important details such as child support or alimony payments, significant income tax write-offs, or other garnishments, it can cause a file to be declined that was originally approved with conditions.
Processing
During this stage, your Loan Processor will review your loan application, then confirm the details of the loan file. The processor will submit your file and conditional electronic approval to a human Underwriter. They will verify that title is clear on the subject property, the appraised value is acceptable, and will work hand-in-hand with you to assemble any additional documentation required by the Underwriting department.
If there are any issues with the chain of ownership or old liens on your property, your processor will need your help to clear them off of your title report. Examples include an old loan that was paid off but still shows as a lien on your home, an unpaid child support or alimony lien, or the title report showing a different ownership than you've applied for on the loan.
After your conditions of the loan have been met, the next step is to have you sign the loan documents with one of out Notaries called the "loan closing appointment".
Closing
Loan documents are sent out to the escrow officer if it is a purchase loan, or to one of our field notaries if it is a refinance or equity loan. Picture IDs are mandatory, as the notary is required to verify your identity by official means as required by regulatory agencies. All persons on title are required to be present when signing loan documents.
Within a 1-3 days, a settlement statement is issued to you that outlines where all of the funds were disbursed, including loan fees paid, reserve accounts for taxes and insurance, if applicable. Upon settlement, cash out funds are due to the borrower, they are typically sent out in a certified check via Fedex and arrives in approximately 2-3 business days depending on the location of your property, whether outside escrow services are required, and applicable state regulations.
Post Closing and Servicing
After your loan has closed and funded, chances are good that your loan will be transferred to a separate loan servicing organization. In essence, this company will buy the rights to service your loan and will take over the administration of your mortgage, sending you your monthly statements and receiving your loan payments.
The final component in the loan process is YOU. We are obsessive about making sure that you are satisfied and happy. We want to hear from you so we can assess our performance and serve you better in the future. Without your feedback we cannot improve and create a better loan experience. Our goal is to make sure that you and your family cannot imagine another refinance, purchase, or equity loan without the expert assistance of our team.
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