The Loan Closing Process
Step 1: Loan application
Your mortgage loan application can be taken over the telephone, via fax or online.
Step 2: Loan processing
After the application is received, it will be reviewed to make sure the information is complete and consistent. The information is verified and the presence of all essential documents is confirmed. An appraisal is ordered to ensure the property is worth the loan amount. Your credit report is ordered.
Step 3: Underwriting
Once all documents are gathered, your loan package will be submitted to an underwriter who will evaluate your loan information as well as your ability to make the monthly loan payments.
Step 4: Loan Approval
You will be asked to provide any additional information needed by the underwriter and notified of the conditions which must be met in order for your loan to close and fund.
Step 5: Draw Closing Documents
The legal documents that are to be signed in escrow will be ordered.
Step 6: Closing
A title agent reviews the settlement statement with you. This document includes all the final costs for the purchase. You will sign all documents such as the mortgage or deed of trust, note, Truth in-Lending Disclosure and other miscellaneous closing documents. You will give the closing agent a certified or cashier’s check for the down payment and closing costs. (purchase)The seller will sign a deed and other miscellaneous closing documents.
Step 7: Loan Documents Return to Lender
The lender receives the signed documents and verifies all conditions have been met and that the figures are accurate.
Step 8: Loan Records
The funds are disbursed and the transaction is recorded at the County Recorder’s office. The home is now officially and legally yours. You receive the keys to your new home!