Homebuyer Loan Process
Unless you are paying cash, closing on your home purchase requires successfully securing a loan through a reputable lender. Meeting with a lender, getting your finances in order, and officially being pre-approved for a mortgage greatly speeds up the overall process. You’re not a serious contender in this market until you are pre-approved for a loan.
We can recommend our preferred lenders for better customer service, quicker turnaround times, and optimized negotiation power. We know they’ll give you the best shot at quickly moving forward on strong financial footing.
FINANCING QUESTIONS TO CONSIDER WHEN STARTING THE HOMEBUYING PROCESS:
Have you arranged financing yet? Yes No
Do you need assistance in locating financing? Yes No
Have you been pre-qualified, pre-approved, or otherwise
informed as to what your maximum purchase amount is? Yes No
Do you have enough funds in your account to cover earnest money
(typically 3 percent of the purchase price)? Yes No
If yes, what amount have you been pre-qualified/pre-approved for?
If yes, do you have a pre-approval letter stating this amount? Yes No
What monthly payment range would you feel comfortable with?
Will you require down payment assistance? Yes No
FINANCING PROCESS AFTER YOU’VE WRITTEN THE OFFER:
Application and Documentation
You will formally apply for a loan once you find the right home and know the exact selling price. The lender will want verification of your full financial picture including employment, debt, assets, etc. They will also perform an appraisal on the property.
Loan Submission and Approval
Once all the necessary documentation is in, your loan processor will put the loan package together and submit it to the underwriter for approval. Upon receiving your submission, the underwriter will decide whether to approve your loan and whether it’s a conditional approval.
Documents are Drawn
After approval, the loan documents (including the note and deed of trust) are completed and sent to the title company. You will then come in to sign final documents and pay any required closing costs.
The signed loan documents will be returned to the lender, who then reviews the package. If all the forms have been properly executed, the funds will be transferred by wire.
Recording and Closing – THE KEYS ARE YOURS!
When your title company receives the funds from your lender, your escrow officer will authorize the recording of your signed documents with the county recorder. The lender will then prepare a final settlement statement, disburse the proceeds to the seller, pay off the existing encumbrances and other obligations.