The Loan Process

            Prequalification

            You will be required to be prequalified for your home loan. This is an interviewing and analyzing process done by the loan agent that determines whether your income and credit can meet the requirements set up by the lender. A Prequal lettr is sent to the seller on your behalf stating that based on the belief that you have filled out your application factually and you have a good credit report, you can qualify for your loan. This letter is conditioned that all the information you have supplied can be verified. The first level of prequalification can be accomplished within 2 - 24 hours.

            The 2nd level of prequalification (more often referred to as the Credit Approval Status) is when the lender has approved you as meeting their requirements. This is accomplished when all verifications and necessary documentation have been submitted to the lender and have been analyzed. This level is more in depth and is completed when the lender and the lender's insuring company have approved you. (Verifications and credit reports need to be updated after 90 days. In the event that your home is not completed within that period of time, we will resubmit all verifications to keep than current to meet the lender's requirements. You may incur the expense of an additional credit report.)

            Three Steps of the Loan Process

            1. APPLICATION - The borrower's statement and presentation of all facts required by the lender (foundation on which the file is submitted to the lender)
            1. List of basic required documentation
              1. Completed Application
              2. 2 years tax returns and W-2's
              3. Current and 2 years 1099's and Profit and Loss statements if self employed.
              4. Payroll stubs showing last 30 days.
              5. Proof of all sources of income (ie; rentals, alimony, child support, investment income, retirement, or social security)
              6. If your home is under construction there may be additional documentation.
              7. Purchase agreement if you have selected your new home.

            2. PROCESSING - Document gathering and investigation process to build your file. (This takes approximately 2 weeks after the loan agent receives the application and all necessary documentation)

            1. Order Credit Report
              1. Note: We will work with you to update this report
            2. Order Preliminary Title Report
            3. Verify statements you made on application
              1. Writing to your employer to verify your job status and income.
              2. Contact your bank(s), savings, investments, etc. to verify the balances in your asset accounts.
            4. Order the appraisal (Timed according to the final stages of closing your loan)
            5. Obtain any documentation that is special to your circumstances.
              1. Divorce papers
              2. Financial statements if self employed
              3. Required letters of explanation
              4. Etc. (ie; legal documentation, proof of payment, financial tracking)
            6. Submit your file, meeting all requirements, to the lender.

            3. UNDERWRITING AND SUBMISSION - Presenting your completed loan package to the lender. This is the first stage of analysis to determine the approval or rejection of your loan based on established guidelines for specific programs under which you applied. (Thoroughly processed application and well presented package)

            1. Approval and underwriting time (Lender, Investor, and MI approval)
              1. Underwriting 2-3 days
              2. Jumbo loan 2-5 days
            2. Most lenders impose some conditions. Allow time to satisfy and remove these conditions.
            3. Doc Prep (Preparation of all legal documents)
              1. 2 days for Doc Prep
            4. Escrow prepares escrow instructions and settlement statements for signatures (2 days)
            5. Funding - back to lender's funding department review and final approval (36-48 hours)