One of the most important steps in the loan process is selecting a mortgage lender, and your Buyer’s Agent is very knowledgeable in helping you make this decision. Upon selecting the mortgage lender that's right for you, the following steps in the loan process will occur:
Application - All pertinent documentation is obtained. Fees and down payments are discussed, and the borrower will receive a Good Faith Estimate (GFE) and a Truth-in-lending statement (TIL), itemizing the rates and associated costs for the loan.
Documentation - If not already completed in the pre-qualification stage, your Sales Associate will order all necessary supporting documentation. Once inspections are completed, your Associate will order an appraisal on the property. As it comes in, documentation is checked for any irregularities.
Loan Submission - Once all the necessary documentation is in, your completed file is submitted to a lender for approval.
Appraisal - the Lender will have an independent appraisal done on the property to help minimize their risk.
Loan Approval (Underwriting) - Loan approval, or underwriting, generally takes 24 to 72 hours. All parties are notified of the approval and any loan conditions that must be received before the loan can close.
Closing - Once all parties have signed the loan documents, they are returned to the lender. If all the forms have been properly executed, the lender sends the loan funds by wire transfer. At this point, the borrower finishes the loan process and actually buys the house.