Process of Loan Approval
APPLICATION
Complete a Uniform Residential Loan Application (URLA) or sometimes referred to as a 1003.
Credit is run and merged with your loan application so all creditors appear on the URLA
DISCLOSURES
Loan Disclsoures are prepared for review and signatures.
List of common disclosures are listed here
LOAN DOCUMENTS
Loan Documents are the borrowers personal documentation of income and assets. The loan officer will verify accuracy before sending to the underwriter.
List of common lon documents required here.
APPRAISAL
Appaisal is ordered throught an Appraisal Management Company (AMC). Borrower will receive authorization to order and pay for appraisal. Typically takes 7-10 days to receive completed appraisal.
TITLE SEARCH
A title search reviews public records to confirm property ownership, identify liens, easements, or legal issues, ensuring the seller can legally transfer clear title to the buyer.
UNDERWRITING
Underwriting a mortgage is the lender’s process of verifying a borrower’s income, assets, credit, and property value to assess risk and decide whether to approve the loan.
MORTGAGE APPROVAL
An underwriter issues mortgage approval after verifying all documents, confirming borrower qualifications, and ensuring the property and loan meet lending guidelines and conditions for final approval.
CLEAR TO CLOSE
“Clear to close” means the underwriter has approved all conditions, and the lender authorizes the loan to proceed to the funding department where the final closing package is prepared for signatures.
FUNDING
When a loan reaches funding stage, the lender and title company finalize documents, verify final figures, and prepare the closing package for borrower signatures before releasing loan funds.
DO's and ABSLOUTELY DO NOT's
during your mortgage process
TOP 5 DO's
DO ask questions about anything
DO Continue to make any and all required payments
DO keep all financial records well organized and accessible
DO be highly responsive to loan officer or processor throughout
DO review all documents carefully, especially the Closing Disclosure
TOP 5 DON'Ts
DO NOT Apply for ANY new credit
DO NOT miss any payments or run up a credit card balance
DO NOT make large deposits or withdrawals or move funds between accounts
DO NOT quit your job (lender will call 2-3 days before closing to verify still employed)
DO NOT spend your funds needed at closing. Cannot pay for closing costs on a credit card