The Loan Process

Prequalification

Prequalification occurs before the loan process actually begins. We gather information about your income and debts, and make a financial determination about how much house you may be able to afford.

It's a very important to know how much home you can afford before you start shopping for one!

If you are thinking of refinancing the loan on your existing home, The L  oansA2   z  team will help analyze the benefits of refinancing.  It is important to weigh all of the factors unique to your situation to determine if a refinance is right for you.  We can also help you select the most appropriate type of loan as well.
 

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Application

Generally, the application is generated at the time of pre-qualification.  The application is the road map of your financial life and is your statement about where you live, work, the amount of income you have and from what sources, where you have your assets bank accounts, other property, etc. 

Once your offer on a home has been accepted, you will be asked to provide additional supporting documentation for the information you have provided on the application.  These will include tax returns, paystubs, bank statements, etc.  Also at this time, you will receive the Application & Disclosure package which contains copies of the various disclosure notices a mortgage lender is required to present for your signature.  The LoansA2z team uses a high security Document server that enables you to securely upload document directly to us.  This technology uses the same high encryption methods you use with your bank's on-line banking.

 

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Processing of your Loan

Processing involves gathering all of the supporting documentation and necessary information in a particular format so that it can be presented to the underwriter for a quick underwriting approval. 

The Processor reviews the credit reports and documentation to verify your employment, debts, and payment histories. Sometimes conflicting information is discovered during this process.  When that occurs, of if there are areas of questions, the process will sometimes ask for additional information or a letter of explanation, which is sometimes referred to as an LOX.  These can also be necessary if there are late payments, collections, judgments, or other issues that are revealed during the processing.  The processor also orders and reviews the appraisal and survey or title report for property issues that may affect final loan approval. The processor's job is to put together an entire application package for the lender's underwriter.

It is very important that you cooperate by getting any requested items to your processor as quickly as possible.
 

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Underwriting

The underwriter is responsible for determining whether the borrower meets all the lender's criteria. Generally the  underwriter will condition the file for some additional items to clarify any questions or concerns the underwriter has. 

When the underwriter approves the loan, loan documents are ordered so you can schedule a signing at the Title or Escrow company.  Once all of the loan documents are signed, they are returned to the lender for review and funding.
 

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Closing

The term "closing" actually has two meanings in the mortgage industry.  Many times you will hear the appointment time scheduled for the buyer (or seller) to meet with the title company as "Scheduling a closing".  But technically, in most states the closing is defined as the point in time where the title agency records the legal documents with the county recorder's office.  This occurs after all of the documents signed and cleared by the lender, the funds are released to the closing agency (usually the title office) and daily pro-rations are finalized.

In a purchase, once the documents are recorded, you are officially a homeowner and the new keys should be delivered to you.