The application is the first step in the loan process. This is where the mortgage loan specialists gather information, income, asset documentation, and run a credit report. Once enough information has been gathered to make a credit decision, the loan specialist pre-qualifies the borrower for a loan program and sends out the initial loan application and disclosures.
When all loan conditions have been collected everything will be re-submitted to the underwriter to issue the final approval. The underwriter reviews all conditions and, if satisfied, clears the loan for closing documentation.
After all the necessary documentation has been gathered the loan is submitted to underwriting which provides a preliminary loan approval. The mortgage underwriter analyzes the income, asset, and credit documentation and issues a loan approval. This approval contains the conditions required to close the loan.
Once the loan specialist and the borrower feel comfortable with how the process is going then we order the appraisal. The appraisal company contacts the borrower, measures the property, and takes pictures of all the rooms. Then he prepares the report and establishes a value for the property. This is usually charged to the borrower’s credit card.
Finally, we prepare the loan documents. The loan documents will be sent to escrow to prepare documents for the notary to subsequently be signed by the borrower. The borrower will have to present valid identification and be finger printed for the signing of the final loan documents.