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Pre-Qual |
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Pre-qualification
is the beginning
of the process. In
pre-qualification, the lender gets information on the income
and debts of the borrower and makes a determination about
what the borrower might afford. |
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Application |
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This
is just the beginning of the loan process. The "borrower",
completes an application with the loan officer and supplies
the documents required for processing. Fees should be disclosed
now and the borrower will receive a Good Faith Estimate (GFE)
and a Truth-In-Lending statement (TIL) within three days.
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Processing |
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Processing
is a review of the credit reports and verification of debts
and payment histories. This could take the form of verifications
of deposit, verification of employment, verification of rent
or mortgage. It may require pay check stubs and bank statements.
If
there are late payments, collections for judgment, or any other
'hits' on the credit of the borrower, a written explanation
will be required. The processor also reviews the appraisal and
title policy. The processor's job is to pull all the pieces
together in an orderly package to be underwritten by the lender.
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Underwriting |
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Lender
underwriting determines whether or not the combined package
is an acceptable loan. If more information is needed, and it
almost always is, the underwriter requests information or documentation
specific to the area they are questioning.. |
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Mortgage
Insurance |
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Mortgage
insurance underwriting occurs when the borrower has a mortgage
of more than 80% of the value of the property. The loan is submitted
to a private mortgage guaranty insurer, for insurance to the
lender in case of default. |
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Closing |
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Ah,
Closing. Somehow, no matter how prepared everyone is,
this day rarely goes off without a hitch! High anxiety,
as closing papers are drawn and delivered to the escrow agent
or closing attorney and arrangements made to transfer funds.
Title will have been ordered, delivered, and approved by the
Lender; proof of homeowner's insurance will be taken to the
closing, and funds needed by the borrower will be certified.
If
this is a purchase, funds will change hands on this day.
For refinances, there is a three-day right of recission, which
means funding will take place three business days later than
closing.
Could
it get any easier?
Call
Traci, 770-333-4404 or send
an email and we'll call you.
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