The Loan Process

With Chris you will discuss your current situation and your short and long-term needs and goals. Together you will determine the best loan program and configuration for your refinance or purchase transaction. This process includes being “pre-qualified” to match your income, employment, asset and credit profile to a prospective transaction plan, loan program and lender. Your target loan terms should be established.

If your proposed transaction is a purchase, you and your agent will need some assurance that you will be approved for the necessary financing when you need it. This confirmation can only be achieved by a review of your income, asset and credit documentation. When you submit the requested documentation to Jenny or Heather, we will electronically pre-underwrite your prospective loan request. Once this is completed we can issue to you and your agent a pre-approval letter to accompany any purchase offers you wish to make.

The formal loan process will begin once you have made your decision to refinance, or your purchase offer has been accepted. With Chris you will decide whether to lock or “float” your interest rate. Jenny will order the appraisal and contact the escrow and title insurance companies for the paperwork we will need from them including their fees, escrow instructions and your preliminary title report. She will request that the necessary disclosure package be sent to you and begin to prepare your application package.

There are three phases to this part of the process…

1) Pre-underwriting and Submission: Jenny will assemble the many components of your loan request package and submit it to processing who will review the file and pre-underwrite the loan. The processor will perform the various processing steps and background checks that are now required by Federal law. Once satisfied with the loan package, the file will submit it to underwriting.

2) Conditional Loan Approval: Once your loan request has been underwritten a “Conditional Approval” will be issued. The approval conditions will be separated into two categories, “prior to documents” and “prior to funding”. These conditions might include revisions or corrections to an appraisal, title report or escrow instructions, or additional documentation or clarification for your income, employment, credit history or assets.

3) Loan Documents and Funding: Once we have satisfied the “prior to document” conditions, we will order your loan documents which will be emailed to your refinance or purchase escrow officer. Your escrow officer will call you to schedule an appointment to execute these documents, which will include your promissory note (or loan contract), the trust deed, closing statement and disclosures. Meanwhile, we will be working to satisfy all “prior to funding” conditions. Once these conditions and your executed loan documents have been received, reviewed and approved, your loan will be funded. The following work day your trust deed will be recorded and loan proceeds dispersed by escrow. Your transaction will then be considered “closed”.

Ongoing we will watch the market and periodically review your mortgage to monitor its performance. We will be sending you newsletters to update you on real estate and mortgage-related developments and contact you if we think there is an opportunity to improve on the terms of your loan.