The Loan Process

1. The Application
   The key to the loan process going smoothly is the initial interview. At this time, the lender obtains all pertinent documentation so unnecessary problems and delays may be avoided. The Realtor or Loan Agent opens escrow with the title company at this time as well.
2. Ordering Documentation
   Within 24 hours of application, the lender requests a credit report, an appraisal on the property, verifications of employment and funds to close, mortgage or landlord ratings, a preliminary title report and any other necessary supporting documentation.
3. Awaiting Documentation
   Within one to two weeks, the lender begins to receive the supporting documentation. As it comes in, the lender checks for any problems that might arise and requests any additional items needed.
4. Loan Submission
   Once all the necessary documentation is in, the loan processor puts the loan package together and submits it to the underwriter for approval.
5. Loan Approval
   Loan approval generally takes anywhere from 24 to 72 hours. All parties are notified of the approval and any loan conditions that must be received before the loan can close. The loan approval is the beginning of the closing process.
6. Documents are Drawn
   Within one to three days after the loan approval, the loan documents (including the note and deed of trust) are completed and sent to the title company. The escrow officer calls the borrowers to come in when the papers are ready for final signature. At this time, the borrowers are told how much money they will need to bring in to close the loan.
7. Funding
   Once all parties have signed the loan documents, they are returned to the lender who reviews the package. If all the forms have been properly executed, the funds are transferred by wire.
8. Recordation
   When the title company receives the funding check from the lender, they make the lender's security for the loan a matter of public record. They do this by recording the note and deed of trust at the county recorder's office. Escrow is now officially closed.