The Whole Loan Process in 9 easy steps
9 steps through the loan process
I’m going to give you 9 steps through the loan process from beginning to funding and recording and becoming a homeowner.
Step number 1
You have two options:
1. sit down with me, we’ll fill out the application together, and I’ll figure out what documentation you need.
2. You can always go to www.ChrisTheMortgagePro.com click on apply for a loan and fill out the application. Takes you less than 10 minutes and we can start from there. Either way, we begin with an application, and from there I discern what kind of documentation we need.
First of all, we’re going to run the credit. Sometimes the documentation is reflected on what I see on the credit report.
In most cases I will always need:
• DL and SS card
• 2 years W2’s
• 2 years taxes – if you’ve had a bankruptcy I will need the Bankruptcy discharge papers.
• 2 months bank statements – all pages are required, even if it says, “this page intentionally left blank.” I need that page too.
Step number 2
We put all of the documentation together, and I submit it to my processing department.
We order title, open up escrow, and figure out what we need. The processor’s job is to go through all the documents and put together a needs list of additional documents required. In the meantime, you’re going to sign disclosures. You can electronically sign, or you can sign them by hand, that’s going to be up to you.
Step number 3
Order the appraisal.
We order the appraisal through an appraisal management company, we don’t pick up the phone and call Harry the appraiser. We have to order it through an Appraisal Management company legally.
Moreover, what happens is they randomly pick an appraiser in the area.
Step number 4
We’re going to take all the documentation and information from the escrow and title company along with the appraisal and put it all together. We then submit this package to the underwriter.
The Underwriter is going to approve the file by checking every single item.
Step number 5
The underwriter approves the file.
They approve the file, but they’re going to ask for actual proof of certain items. We call this, conditions. It is very common on every single loan.
Step number 6
We get all of those conditions that the underwriter
has asked for, and we order the CD (Closing Disclosure). You sign the closing disclosures and legally you’re not allowed to sign the documents for Three more days.
Step number 7
You’ve signed the CD and waited 3 days. We’re now ready to sign the docs. You can often go to the escrow company and have a notary sign you there, or we can send the notary right to your house or your place of business, or you can meet at a local restaurant or Starbucks.
Step number 8
All those documents go back to the company.
The underwriter checks them off, the escrow company, the title company all work together to make sure everything fits as it should. Then we Fund the loan.
Step Number 9
Recording the loan
The loan may fund, however, we have to record it with the local county. Once the loan is recorded the house is yours, you have officially Fired Your Landlord! You’ve become a homeowner.