Loan Process

From Application
to Clear to Close

1

Application

Complete a Uniform Residential Loan Application (URLA / 1003). Credit is pulled and merged with your application so all creditors appear on file.

2

Disclosures

Loan disclosures are prepared for your review and signatures. See the common disclosures list for details.

3

Loan Documents

Personal documentation of income and assets. Your loan officer verifies accuracy before submitting to underwriting. See the common documents list.

4

Appraisal

Ordered through an Appraisal Management Company (AMC). You'll receive authorization to order and pay for the appraisal — typically takes 7–10 days.

5

Underwriting

The underwriter verifies income, assets, credit, and property value to assess risk and determine whether to approve the loan.

6

Title Search

Reviews public records to confirm ownership and identify any liens, easements, or legal issues — ensuring the seller can transfer clear title.

7

Mortgage Approval

The underwriter issues approval after all documents are verified, borrower qualifications confirmed, and all lending conditions are met.

8

Clear to Close

All underwriting conditions are satisfied. The lender forwards the file to the funding department where the final closing package is prepared.

9

Funding

The lender and title company finalize documents, verify final figures, and release loan funds after borrower signatures on the closing package.

Do's & Absolutely Do Not's

Do's

  • Continue making all payments on time
  • Keep your current employment and income consistent
  • Maintain your current bank accounts and balances
  • Respond promptly to your loan officer's requests
  • Contact your loan officer before making any major financial decision

Absolutely Do Not's

  • Apply for any new credit — no new cards, auto loans, or financing
  • Miss any payments or run up a credit card balance
  • Make large deposits or withdrawals, or move funds between accounts
  • Quit your job — the lender will call 2–3 days before closing to verify employment
  • Spend the funds needed at closing — closing costs cannot be paid by credit card

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.

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.

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.

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.

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.

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

  • DO
  • DO
  • DO
  • DO
  • DO
  • 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