Kathleen Wilson, Realtor ®
Prudenital California Realty
10240 San Pablo Avenue, El Cerrito 94530
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Home Loans
A general guide.
As your real estate professional, I will help you select a mortgage lender. Once you have made your decision, these are the steps of the process:
- The Application - The key to the loan process going smoothly is the initial interview. At this time, we obtain all pertinent documentation so unnecessary problems and delays may be avoided. Various fees and down payments are discussed at this time and the borrower will receive a Good Faith Estimate (GFE) and a Truth-in-lending statement (TIL) within three days which itemizes the rates and associated costs for obtaining the loan.
- Ordering Documentation - If we have not already done so in the pre-qualification stage, we will order a credit report, verifications of employment and funds to close, mortgage or landlord ratings, a preliminary title report and any other necessary supporting documentation. Once your inspections are completed, we will order an appraisal on the property. The cost to you is approximately $300 for a single family home, more for multiple units. The credit report is usually around $50 per person or married couple.
- Awaiting Documentation - Within one to two weeks, we begin to receive the supporting documentation from your employer, landlord and banks. As it comes in, the documentation is checked for any irregularities, and any additional items needed are requested.
- Loan Submission - Once all the necessary documentation is in, the loan processor puts the loan package together, your loan agent prepares a cover letter, and your completed file is submitted to a lender for approval.
- Loan Approval (Underwriting) - Loan approval, or underwriting, generally takes anywhere from 24 to 72 hours, and it can take slightly longer if mortgage insurance is required. "Mortgage insurance underwriting" occurs when the borrower has less than 20 percent of the loan amount to put towards a down payment. All parties are notified of the approval and any loan conditions that must be received before the loan can close. You may then remove your financing contingency.
- Documents are Drawn - Within one to three days after loan approval, the lender prepares your loan documents (including the note and deed of trust), which are sent to the title company. The escrow officer will call you to set up an appointment when the papers are ready for your final signature. At that time, you will be told how much money you will need to bring in to close the loan. Keep in mind that you will need to bring a cashier's check.
- Closing - Once all parties have signed the loan documents, they are returned to the lender, and the package is reviewed. If all the forms have been properly executed, the lender sends the loan funds by wire transfer. This is the point at which the borrower finishes the loan process and actually buys the house. Some states require that the closing take place at a closing attorney's office while others use a title or escrow company.
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