Overview of the Loan Process

You have decided on the house to buy, now what? The following explanation will tell you what to expect from loan application to loan closing.

Loan Application

You will meet with a representative of the mortgage company or bank to complete an application.

Loan Processing

Starting with the information from the loan application, the loan processor puts together a picture showing your ability to qualify for the loan. This picture includes a credit report, verifications of employment and deposit and a property appraisal. Loan processing is usually the most time-consuming part of getting a home loan taking form one to three weeks. There are also reduced documentation programs available for qualified applicants.

Loan Submission And Approval

Once the loan processor has put the picture together, your loan package is submitted to an underwriter. The underwriter's job is to review your file to be sure it meets criteria for granting the loan. If everything is in order, the underwriter will issue a loan approval. Occasionally, the underwriter will require additional information from you before or at closing. Underwriting usually is a twenty-four to seventy-two hour process.

Loan Closing

After the mortgage company has received the loan approval, you and the seller can decide on when you would like to close or to finalize the sale. The mortgage company or bank will probably need at least twenty-four to forty-eight hours notice in order to prepare the closing documents. At closing, the seller will convey the property to you, and you will sign final documentation at the title company.
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