The Loan Process
The application is the beginning of the loan process and occurs once you have decided you need to know if it is a good idea to buy or refinance. It consists of filling out some basic info about yourself (usually via online or phone) and providing all required documentation.
Prequalification occurs after Green Family Mortgage receives your loan application and documentation. We talk with you about your specific situation and then work with you to make a financial determination about how much house you may be able to afford, either for now or in the future, depending on your situation. It's a good idea to know how expensive a home you can afford before you start shopping for one! Also most realtors will require that you present a "Pre-Approval Letter," from your mortgage broker when making an offer on a house-- and it puts you in a stronger buying position to do so.
If you are refinancing the loan on your existing home, then the prequalification process should help you decide whether refinancing is a good idea for you.
Various loan programs, costs and down payment options are discussed at this time.
Finding a Lender
Once you have an accepted offer on a house or you have decided to move forward with the refinance, Green Family Mortgage will start shopping lenders for you. We will look for a lender that has the lowest interest rate, best loan program to fit your needs, and good customer service to insure a smooth transaction during the loan process.
Processing and Underwriting Approval
Once we have chosen a lender, we will submit the application package to the lender for their underwriting approval.
The lender reviews the application, credit reports and documentation and verifies your employment, debts, and payment histories. They also review the appraisal, title report, and check for property issues that may affect final loan approval.
If the underwriter approves the loan, the lender issues Green Family Mortgage a conditional commitment to lend, orders title insurance, and works with you and Green Family Mortgage to clear all conditions to its commitment to lend.
The signing will occur after all conditions are cleared, the lender issues a full loan approval, and you have seen and acknowledged the Closing Disclosure with final cost estimates. The signing time will be arranged by Green Family Mortgage, with respect to your schedule, to take place at the escrow company's office.
Once both you and the seller have signed your documents the escrow company will send the original documents back to the lender who will review them to insure there are no further funding conditions. The lender will then fund the loan by wiring money to the escrow closing agent. Upon receipt of funds the escrow company will record the deed with the county and disburse funds in exchange for the title transfer to the property. This is the point at which you finish the loan process and close on your home!
(Or if you are refinancing this is the point at which your new payment and terms will take effect).