The very first step of your home buying journey. This is where we get to know your financial situation and answer any questions you may have about the loan process. We will ask you to complete an application, check credit and collect income documents. The purpose of this is to make sure we put you in the best position to get a loan approved and funded with a bank, when you find the home of your dreams. Whether your plans for homeownership are next month or a year, its always a great idea to start planning for your future.
Now that you are pre-approved you will receive a letter from us, that tells your realtor you are ready to start looking at homes. It puts you in a position to put an offer in on a home and be considered by a selling agent. Your realtor will help you with the real estate side of the transaction by making sure your needs are met. From taking you to find homes, negotiating the contact with the selling agent and working with us to close the loan. If you need help finding a realtor please let us know, we have several wonderful agents we would love you to work with.
Once your realtor has helped you find the home of your dreams it is time to submit an offer. This tells a selling agent you would like them to consider your offer for the purchase of the home. The selling agent will speak to your realtor, review the contract, our pre-approval letter, and call us usually to verify the information in the letter. The purpose of this is to identify that you are a viable candidate and that your loan with be accepted by a bank and closed within the timeframe requested by both parties.
SUBMITTING YOUR LOAN APPLICATION
If the selling agent accepts the offer we go into contract on the home. Yeah! Now we take all the documents we collected in the pre-approval stage, contract and application and submit them to a bank. (please note updated information may be needed, depending on the length of time from pre-approval to contact) The goal is to find you a bank with the most favorable processing times and rate to ensure we save you the most time and money possible. During this time the realtors will identify a title company that will be used. The purpose of the title company is to prepare documents, hold money for transaction and facilitate the closing of the loan.
Once the bank is identified and they have all the initial information they need, you will receive a set of loan disclosures. They will show all aspects of the loan including costs, borrowers on the loan, and how the loan is structured. Many of the numbers you see will be estimates from both us and the title company. Once you sign the loan disclosures, we can order your appraisal and submit the loan for underwriter approval.
INITIAL LOAN APPROVAL
Once the underwriter reviews all pieces of the loan, we will receive an initial loan approval. This tells us that loan can be approved usually with the addition of a few more documents and explanations. The bank wants to understand your financial situation and we help you by collecting, explaining, and providing documentation. We are your advocate to getting the bank the information they need to close and fund the loan. Remember to always be honest with your loan officer, we can’t help situations we don’t know about.
Once the bank has gotten to know your financials, received all required documents and has no other questions, they will issue a final approval. This is coordinated with the realtors in the transaction and you, as the buyer, to make sure everyone is ready to move forward.
,Now that the bank has all the necessary documents and everyone has signed off on the loan a closing disclosure is ready to be signed by you, the borrower. This is one of many disclosures you will sign in the course of processing your loan, but this is one the most important. This disclosure should have all the correct terms of the loan, such as rate, loan amount, fees and so on. This starts a three-day regulatory waiting period to make sure you are happy with the information in it and are ready to move forward with signing the loan documents.
SIGNING LOAN DOCUMENTS
At last, the three days waiting period is up, the bank will send loan documents to the title company that was chosen in the beginning of the transaction. They will prepare the documents and coordinate a signing date and time with you. This could be at their office or at your home or work. The goal is to make this convenient and have someone there to answer any of your questions about what the documents say and ensure accuracy of the information. We want to make sure you have the peace of mind that the terms from beginning to the end have been honored.
Once the loan documents are signed, the title company will take them and record the information with the county where the home resides. They will also communicate with the bank to ensure the bank funds the loan. We will help facilitate the transaction by communicating with the bank, title company, and all realtors. Once funding and recording with the county is completed, we communicate with the realtors so they can arrange next steps with you and the sellers. It is now time to enjoy your new home!