THE LOAN PROCESS
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Processing: Once an application has been received, processing begins. During processing, the financial information you have provided is verified. We try to anticipate everything the underwriter will request. When all items for processing are received, the file is submitted to underwriting. Processing can take anywhere from 3 days to 2 weeks, depending on the file.

Preliminary Title & Appraisal: As soon as we begin processing your loan, we order a preliminary title report to make sure there are not any liens against the property. We also order the appraisal at this time. This is one of the key elements in any mortgage process. The appraisal will tell us if the property is valued at the amount we discussed during the application.

Underwriting: When the file is received from processing, the underwriter reviews the “whole” package to determine the merits of the loan based on income, assets, credit, and the property. After review, the underwriter will issue a loan decision. Sometimes the underwriter will request additional documentation to complete the loan approval. Underwriting typically takes 24 to 48 hours.

Loan Documents: After final loan approval is issued, the file is sent to the closing department to print the appropriate loan documents. When the loan documents are completed, they are sent to the Escrow/Title Company. Loan documents are typically sent to escrow 2 to 5 days before closing.

Escrow Company: The escrow company is where you will sign all of your closing documents including the loan documents. Ideally, the escrow officer will prepare a settlement statement (known as a HUD-1) 2 to 3 days before signing. The settlement statement will indicate how much money you will need for closing. It calculates down payment, closing costs, tax impounds, and earnest monies you have already paid. The escrow agent will typically call you to let you know the amount of money you will need to close the transaction.

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