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What is the loan process anyway?

You have just found the right home – now what?  We know that finding the right home can be challenging and we would like to help you understand the second phase – securing a mortgage.  Moving through each step below, you will become familiar with the progression of the loan process.

  1. Contract of sale is signed and sent to both the buyer’s and seller’s attorneys for review.
  2. You will order a home inspection.
  3. After the home inspection, further negotiations may occur between the lawyers.

Once the above steps are complete, you are now ready to secure the loan for your home.

  1. MR Capital Group, the mortgage lender, will send you a packet of disclosures, including the Good Faith Estimate (GFE), to sign and return.
  2. Once these are received, an appraisal of the property will take place.

You may hear the word “concession” mentioned. A concession is a sum of money that can be added to the purchase price and used for closing costs IF the appraisal of the property can reflect the increased purchase price.

  1. Our processing department will verify income, employment and the submission of all documents.
  2. The file is now transferred to the Underwriter.  He/She will  review all of the above information and then approve the loan.  Often there are criteria that will need to be met for the commitment letter to be honored.
  3. The commitment letter is sent to your attorney so he can order the Title report.
  4. The processor shares the conditions needed with you.
  5. When all conditions are met, the underwriter clears the file for closing.
  6. The closing is scheduled and the HUD Settlement Statement – which itemizes all costs incurred for the purchase – is prepared.
  7. At the closing:
  8. You will sign a note promising to repay the loan
  9. The mortgage or lien on the property is now created
  10. The title company records the sale and mortgage information with the county
  11. File is returned to the mortgage lender.
  12. Time to pack and move into your NEW HOME!