The loan process changes in different parts of the United States. The explanation of the loan process below is a general sequence of events that takes place during the processing of your loan. Different lenders in different states have their own requirements. The descriptions below are meant to give you a general idea of what is required to go from applying for a loan to closing the loan.

What is the first step?

As might be expected, the first step in obtaining home loan financing is to fill out the loan application (also called a "Fannie Mae 1003", or "Uniform Residential Loan Application").  Our experienced loan officers will be happy to assist you in filling out the loan application if you should have any questions. We will make an appointment to meet with you at your convenience if you desire.  Whether you choose to meet with us or fill in our online application, you will eventually need to provide us with some personal and financial information (click here for a list of what you need to provide).  If you are unable to provide some of the required documents, you can provide them to us at a later date before your final approval.

Do I have to meet in your office?

No! It is possible to complete the loan process without attending a meeting in our office.  This can be done by doing one of the following: filling out our online application form on our site, we will fill it out for you by telephone, you can fax your application to us after you print it out, or you can mail your application to us if you wish.

When we do talk to you, we will discuss different possible loan programs available to you that might best meet your needs, the interest rates available, and your financial and property qualifications for the loan program you've chosen.

After I fill out the application, what happens next?

Once you have chosen a loan program and interest rate, the application has been filled out and you have provided us with the necessary information, we will then send out verification forms to verify your employment history and bank account information, obtain your credit report, order your preliminary title report from the title company and order your appraisal.  Once this information is returned to us, we will compile your loan documents and submit them to the underwriter for final approval.

What does it mean when my loan is approved "with conditions?"

Your loan may be approved as submitted, approved with conditions, or a counter offer may be made for your consideration.  If there are conditions on the loan in order for it to be approved as submitted, we will work with you to satisfy these conditions.  Conditions might include an explanation letter of some sort, copies of investment documents, copies of divorce papers, or any number of things that may help clarify your qualifications for the loan.

After the loan conditions are met (if any) and the loan is approved, the necessary documents are prepared for closing.  The lender will draw up the necessary documents along with any (prior-to-funding) conditions that have yet to be met, and in most cases send them to a title or escrow company near to where you live or your attorney to be signed by you.  Your escrow officer or attorney will arrange for an appointment with you when the loan papers are ready to be signed.

What does "Close Escrow" mean?

The task of closing the loan is normally the responsibility of the escrow officer, attorney, or lender.  This person or company is responsible for gathering together all of the necessary documents (deed of trust, promissory note, etc.) and making sure all documents are signed.  Following the lenders instructions, the escrow officer, attorney or lender then calculates the various prorations, charges and adjustments (interest on your old loan, interest on your new loan, money for impound accounts for taxes and insurance, etc.), makes sure all of the funds are deposited (if any) and provides you with a settlement statement showing all of the costs involved in the loan. Whoever handles the escrow responsibilities also makes sure that all of the parties involved in the loan process are paid after the loan funds. Your loan will then "close escrow" and your new loan will be recorded.

What is a "Right of Rescission?"

After you sign the loan papers, they are sent to the lenders funding department where they do a final check to see that everything is in order.  On a refinance, there is a 3-day right of rescission period.  This means that you have 3 days from the day you sign the papers to change your mind about following through with the loan.  If you have not exercised your right to rescind during the 3-day right of rescission period, the funds are released.  The loan funds are then distributed to the proper parties and the documents are recorded at the county recorders office.  The loan is done! NOTE: There is no right of rescission on a purchase.

What Documents will I need to provide to close my loan?
 
Depending on the type of loan you are applying for, you may need to bring in additional documentation in order for your your loan to close. Below we've listed some of the documents required to close a "FULL DOC" loan. You will only need to provide those documents which pertain to your individual situation. Keep in mind this is a general list only, and you may be required to provide additional documentation before your loan can fund, and you may not need some of the items listed below.

You will only need to provide items from the list below that pertain to your specific situation:

• Most recent pay stubs on all employment for the last 30 days
• The last two (2) years complete tax returns
• The last two (2) years W-2 and 1099 forms
• Award letters for social security or disability income (if applicable)
• Award letters from pension or retirement income (if applicable)
• Mortgage statements on all open real estate loans (including rentals)
• Rental agreements (if you currently have tenants renting from you)
• Checking/Savings accounts and other assets including bank addresses, account numbers, and if available 3 months most recent bank statements.
• Complete bankruptcy papers (if applicable) Copy of petition and discharge, handwritten explanation of reason for bankruptcy, evidence of excellent credit since the bankruptcy 
• Complete divorce papers or separation agreements (if applicable)
• Name and address of current landlord (if applicable - purchases only)
• Letter of explanation for any derogatory credit
• Cash out letter (if you are obtaining a loan with extra cash out, explain what you intend to use the cash for)
• Gift letter and evidence of funds (purchases only)
• If you are NOT a US citizen, we will need a copy of your green card (front & back)
• If you are NOT a permanent resident of the US, we will need a copy of your H-1 or L-1 visa.
If self-employed you will also need:
• A year-to-date profit and loss statement
• K-1 forms (if applicable)
• Partnership and/or corporate tax returns (if applicable)