The Loan Process

One of the smartest moves buyers make is to start the mortgage application process before looking for a home. One of the strongest tools you can have when negotiating on a house is a pre-approved mortgage, one only conditional on an appraisal of the house. The cost associated with a full approval is typically about $65 for the full residential credit check. This is not to be confused with a pre-qualification. If you have done your homework and have selected a good lender, the process should be fairly painless. Below is a brief outline of the process below.

Loan application	This can be done via the telephone, internet, fax or in person. Have available all credit account numbers and balances, bank account numbers, listing of any assets and approximate value. At this point, the loan officer will have you sign releases for credit information. You provide a check for the credit search ($65) and appraisal fee ($325). You should receive a good faith estimate of money needed to close.
Processing	Here you will need to provide copies of the last two years tax returns, last three bank statements, plus copies of any saving type account statements. The processor will assemble all information into a package to be submitted to the underwriter.
Underwriting	This is were the decision takes place. An underwriter trained in loan rules evaluates your file and determines if it meets all the guidelines. If so, your loan is approved and made ready for closing. If not, it is sent back to the loan officer for follow-up information or explanations.
Closing department	They prepare the necessary documents for submission to the title company for closing.
Closing and funding	Closing is typically held at a title company. Here you will sign all the legal documents and submit a cashier's check for the amount of down payment and closing costs less any earnest money deposits you have made.

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