Below is an overview of a typical purchase mortgage loan process. Depending on the type of loan you are applying for: Conventional, Jumbo, FHA, VA, Condos, Manufactured Homes, this process may vary. It’s meant to give you an overview of what to expect and what transaction milestones you’ll need to complete during the loan approval process. Before beginning the approval process it is important to understand how your credit score can impact your qualification for a loan.
A thorough Pre-Approval Process completed up-front, before you enter into a contract is the singular most important step you can proactively take to ensure a smooth loan process.
Finding a Home & Signing a Purchase Contract
- We recommend you get a good realtor. A strong realtor will not only help you find the right home but will put the purchase contract together for you properly.
- Know the important dates/milestones of your contract.
Sign Loan Disclosures & Initiate the Loan Process
- The first step is to sign the loan application disclosures.
- E-Sign is a quicker, more efficient and accurate manner to sign your loan application.
- We will require the appraisal to be paid to the appraisal management company when the appraisal is ordered, so we will need a credit card authorization form completed. The cost will range from $500 to $850 depending on the property and loan type. This will be quoted upfront with the closing costs.
Submission of the Application Package to the Loan Processor
- The Loan Processor will then review your documentation and prepare the loan package for review by the Underwriter.
- If an updated bank statement is requested, make sure that all pages of the statement are included (i.e. If the statement reads Pg. 1 of 6, double-check that all 6 pages of the statement are supplied, even if they are blank).
- If a clear ID document is requested, make sure that the scanned/copied image is visible. This can be done by taking a picture with your cellphone.
- Also, ensure that the docs copied/scanned fit within the margins and are not cut off.
Submission to Underwriting
- The Loan Processor will next submit the loan to the Underwriter.
- The length of time it will take for underwriting to review your loan will depend on the type of loan but it is typically between 24 – 72 hours.
Conditional Approval/Underwriting Conditions
Select an Insurance Agent.
Review of Underwriting Conditions
Updated Worksheet Estimating Closing Costs & Cash-To-Close
Closing Best Practices
- The title company will require a government-issued picture ID for each person signing at closing.
- Any person on the title will need to sign documents at closing. Please ensure that all parties on the title will be present at the closing.
- Non-borrowing spouses will be required to sign the mortgage on any primary home and most second home transactions. Please coordinate so that they are present.
- Transfer of Funds/Cash-Due-At-Closing.
- Please coordinate with your contact at the title company to arrange the transfer of the funds at closing. The title company will not accept personal or cashier’s check and will only accept wire transfers. They will provide you with the wire instructions. Please allow ample time for the funds to transfer.