Here at The Mortgage Source, LLC we make the steps to getting a loan simple and easy. Having a good process of obtaining a loan starts with good communication. Communication of what to expect and being prepared for any “curve balls” that may possibly occur. Having closed and overseen thousands of closings in our over 40 years combined experience has made us very efficient and aware of the obstacles before they happen.
There are simply 5 steps involved with obtaining a loan:
This is the initial step and occurs before the loan process begins, you might call it a planning step.This is where we gather information from you about your expectations, income, debt, employment, etc.
We take this information and propose the best rates and programs to match your individual needs. If you are purchasing, you need to know how much house you can afford before you go shopping. If you are refinancing, you need to know all of your options and see whether refinancing is a good idea at this time.
We will answer all of these questions for you at this beginning step.
2) Application & Disclosures
Once you have chosen a property to buy or have decided you are ready to refinance the application process begins. We update some detailed information from you ( i.e. ss number,etc) to complete the application and send you all the disclosures to sign on the program you have chosen along with a list of items we will need to process your loan.
3) Processing, Locking rate & Appraisal
When you send back the signed disclosures and the items we need from you, the processing of the loan begins.
During processing we lock your rate in and review all of the information you sent back and examine your income and other documents to make sure everything matches up properly. If we see anything we feel the underwriters may have a question about we will contact you to get these questions answered before submitting your loan to underwriting.
At this point when we feel your information looks complete we submit the file to underwriting and contact you to order the appraisal.
4 ) Underwriting
Your file has been submitted and placed in a queue to be reviewed by an underwriter. Each lender has different turn times depending on volume on how quickly your file will be looked at. Normally 2-5 business days is a good range to expect.
Most if not all files submitted have an automated approval already placed in the file which is the basis on which the underwriter looks at the loan. If the underwriter approved the loan the lender will issue a commitment to lend which details all the conditions that are needed to clear your loan before a closing can take place.
Conditions to clear your loan may include anything from income and credit questions to getting your appraised value back.
It is at this point we will contact you to inform you the loan is approved and to go over any items we may need to clear the loan for closing.
A closing will take place after all conditions have been cleared to satisfy the loan. Before the closing occurs we will go over all figures with you again including such items as payments and rate or something like how much cash to close you will have to bring if it is a purchase. We will make sure you understand what all the final numbers are so that you are well informed before closing. A closing date will be coordinated with you to meet your schedule and will occur at either an attorney or title companies office or in the convenience of your home.
Once the loan closes on refinances there is a 3 day rescission period, where the loan will not fund or disburse until 3 business days after closing by law. On purchases, the loan funds the same day as closing , there is no rescission period needed.
We hope that once you are closed you will be happy with our services and refer us to your family and friends. Our goal is to exceed your expectations.