The Loan Process - Step By Step

Step 1: The Interview

The initial interview with your loan professional is going to be a process of discovery. Most likely through a series of questions, he or she will get to know you and gain an understanding of the goals you are trying to attain with your home financing.

Step 2: Loan application

Your mortgage loan application can be taken in person, over the telephone, via fax or online. It is at this time that the information needed to determine your eligibility for a home loan will be gathered. With your authorization, your loan professional will run your credit report to verify your monthly obligations and analyze your current credit rating. With all of this information at hand, your loan professional can review your mortgage loan options with you and help you find the loan that best suits your individual needs. 

Step 3: Loan processing

After your application has been taken, your credit report has been ordered, and your supporting documentation has been received, your loan application package will be reviewed by a loan processor to make sure the information is complete and consistent.  The information is verified and the presence of all essential documents is confirmed. If the subject property for the loan has been identified, an appraisal is ordered to determine that the current market value supports the loan amount being requested. 

Step 4: Underwriting

Once all documents are gathered, your loan package will be submitted to an underwriter who will evaluate your loan information as well as your ability to make the monthly loan payments. The underwriter may ask for additional supporting documentation at this time prior to making a loan approval decision. 

Step 5: Loan approval

Upon receipt of a loan approval, you may be asked to provide additional information needed by the underwriter and will be notified of the conditions which must be met in order for your loan to close and fund. 

Step 6: Draw closing documents

The legal loan documents to be signed in escrow will be ordered. 

Step 7: Closing

A closing agent reviews the settlement statement with you.  This document includes all the final costs for the loan transaction.  You will sign all documents such as the mortgage or deed of trust, note, Truth in-Lending Disclosure and other miscellaneous closing documents.  You will give the closing agent a certified or cashier’s check for the down payment and/or closing costs.  For purchase transactions, the seller will sign a deed and other miscellaneous closing documents.

Step 8: Loan documents return to lender

The lender receives the signed documents and verifies all conditions have been met and that the figures are accurate.

Step 9: Loan records

The funds are disbursed and the transaction is recorded at the County Recorder’s office. For purchase transactions, the home is now officially and legally yours. You will receive the keys to your new home according to the terms in your purchase contract.