THE LOAN PROCESS
GETTING THE LOAN DONE
Phase I
Escrow Starts
Day 1 to 5
1. REALTOR CREATES PURCHASE CONTRACT.
2. REALTOR GIVES ESCROW CONTACT INFORMATION.
3. REALTOR SENDS EMD.
4. REQUEST FOR DOCS FROM BORROWER:
a. UPDATED ID
b. UPDATED PAYSTUBS
c. UPDATED BANK STATEMENTS
d. UPDATED W2
e. OBTAIN CREDIT CARD INFO TO ORDER APPRAISAL
f. OBTAIN SIGNED BORROWER'S AUTHORIZATION
5. FILE SUBMITTED INTO PROCESSING:
a. OBTAIN INITIAL DOCUMENTS FROM ESCROW
(ESCROW FEE SHEET, CPL, PRELIM, AND WIRE
INSTRUCTIONS)
b. SENDS INITIAL LOAN DISCLOSURES TO BORROWER
c. BORROWER SIGNS LOAN DISCLOSURES
d. ORDERS APPRAISAL
e. SUBMITS FILE TO UNDERWRITING
Phase II
Initial Underwriting
Day 4 to 20
1. UNDERWRITER REVIEWS ALL INITIAL DOCUMENTS SUBMITTED.
2. THEY PROVIDE CONDITIONAL APPROVAL (AKA PRE-APPROVAL).
3. THEY SEND A CHECKLIST OF DOCUMENTS NEEDED:
I. UPDATED ID, PAY STUBS,
BANK STATEMENTS, AND W2
II. PROOF OF EMD OBTAINED
III. UNCLEAR DOCUMENTS (LIKE
NEW DEBTS OR ADDITIONAL
ADDRESSES) TO BE EXPLAINED
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4. THEY ALSO VERIFY DATA LIKE PENDING LAWSUITS, OWNERSHIP OF ANY OTHER PROPERTIES, AND FRAUD REPORT.
5. PROCESSOR WILL ORDER VERIFICATION OF EMPLOYMENT, AND HOME, MORTGAGE, AND FLOOD INSURANCE.
6. LOAN OFFICER TO OBTAIN UPDATED DOCUMENTS NEEDED AND LOCK INTEREST RATE.
7. APPRAISAL
I. ORDERED
II. SCHEDULED
III. INSPECTED
IV. REPORT SENT TO LENDER & BUYER
V. REALTOR ADDRESSES REPAIRS IF
NEEDED
VI. UPDATED REPORT REFLECTING REPAIRS AS NEEDED
8. ONCE RATE IS LOCKED AND APPRAISAL & ALL INSURANCES ARE ORDERED, THEN CD CAN BE ORDERED.
9. CD SENT TO BUYER TO SIGN.
10. BORROWER SIGNS CD.
11. RESUBMITS ALL UPDATED DOCUMENTS TO UNDERWRITING:
a. VERBAL VERIFICATION OF EMPLOYMENT OBTAINED
b. UPDATED CREDIT REPORT OBTAINED
c. UNDERWRITER CLEARS LOAN TO
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CLOSE
d. FUNDER SENDS OUT FINAL LOAN DOCUMENTS
Phase III
Closing/Funding
Day 12 to 25
1. SIGNING SCHEDULED FOR BUYER AND SELLER.
2. BORROWER SIGNS LOAN DOCUMENTS.
3. SIGNED LOAN DOCUMENTS SENT BACK TO ESCROW.
4. ESCROW RECEIVES SIGNED LOAN DOCS, AND OVERNIGHTS THEM TO THE FUNDER.
5. FUNDING CONDITIONS PROVIDED BY ESCROW.
6. UPDATED APPRAISAL REPORT WITH REPAIRS RECEIVED.
7. ANY DELAYED CONDITIONS RECEIVED.
8. WIRED FUNDS FROM THE BORROWER IS RECEIVED.
9. LENDER RECEIVES SIGNED LOAN DOCS.
10. LENDER FUNDS THE LOAN.
11. TITLE RELEASES TRANSACTION TO RECORD TO THE COUNTY.
12. TRANSACTION IS ON RECORD.
13. REALTOR HANDS BUYERS THEIR KEYS.
14. PARTAY!!!!
