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Understanding the Loan Process

Your loan experience can be less stressful if you fully understand the steps from application to closing.  Every loan is unique but the information below is a part of every loan process.

1.  Application and Credit Review- this can be done over the phone or in person.  We will ask you information regarding your employment history, debt, credit, and desired price range.  We will provide you with a good faith estimate within three business days of the loan application.

2.  Submit Documents Requested- after our meeting, I will request the documents that will be necessary to process your loan. 

3.  Pre-qualification Letter- once we review your documents and confirm that they match the application I will issue a prequalification letter  to send to your Realtor. The pre-qualification letter lets the seller know you have started the loan process.  Then it will be time to go house hunting!

4.  Sign Disclosures- Once you have an accepted contract, we will meet to sign the loan paperwork.

5.  Submission to Processor – the processor will review the file and request any additional information he/she may feel the underwriter will need to see.  It is imperative that this information be provided promptly.

6.   Submission to Underwriting- once the file has been reviewed by the processor and they are satisfied that the file is complete, the file will be reviewed by the Underwriter. 

7.  Approval with Conditions – The Underwriter will provide a Loan Commitment letter requesting any additional documentation or corrections necessary. 

8.  Order Appraisal- unless you request to order the appraisal earlier, we generally wait for the approval before ordering the appraisal.  The appraisal cost is between $325-$450 and is paid upon ordering the appraisal.

9.  Resubmit File- once the appraisal has been completed, title paperwork received, and all conditions accounted for; the processor will resubmit the file for Underwriter review.

10.  Homeowner’s Insurance- If you haven’t already, now is the time to set up the homeowner’s insurance.  The loan will not close without it. You will need to  provide the insurance provider’s information so we can request the insurance binder.

11.  CLEAR TO CLOSE – These are my favorite three words.  This means that all conditions are satisfied and the underwriter has given the go ahead for the closing department to prepare the documents that you will sign at closing. 

12.  Title Company- Receives the documents and gets your file ready for you to sign.  They also prepare the HUD1 statement detailing the amount that you will need to bring to closing in the form of a cashier’s check or money order.  Be sure to bring your Social Security Card and Drivers License to closing.

13.  Closing - after you have signed the documents the lender will fund the loan.  Congratulations you are officially the homeowner!

Be sure to check the link in regards to the $8000 tax credit to see if you qualify for this wonderful opportunity!

4800 Sugar Grove Blvd. Ste. 195
Stafford, TX 77477
An Equal Opportunity Company. Equal Housing Opportunity.