There’s probably quite a bit more involved than you might think once you submit your loan application. At first, there’s a flurry of activity on your end as you gather the requested information for your loan approval and once you’ve done your part then the lender takes over. But getting from A to Z in the loan approval process does in fact mean there are several steps needed before your loan has completely funded. When you find a home in Alpharetta, GA to buy or you’re going to refinance an existing mortgage, it does get sort of quiet on your end. You’ve done your part so far and now the lender completes the documentation process, stage by stage.
The initial step has already been taken as you submitted your loan application and provided such things as pay check stubs or income tax returns. You will then work with your loan officer’s team to provide any missing information or maybe clarify something. Once you’ve provided what’s needed your file goes to processing. This is one of the more important stages and one of the earliest.
Your loan processor will complete the documentation of your loan file first by reviewing the information you provided while at the same time ordering needed third party services. You’ll need an appraisal and there’s title work to be done. You’ll be asked about your insurance carrier and your processor will need the contact information for your insurance agent. Once the file is documented and ready for review, the next important stage occurs: submission to underwriting.
It’s the underwriter’s job to make sure that the completed loan file contains all that the loan program requires for a final approval. If the loan program for example needs a minimum credit score of say 680, it’s the underwriter’s job to make sure the representative credit score is at or above the 680 minimum along with other important conditions needed to get to an approval. When your loan is submitted to underwriting, it’s almost across the goal line.
When your loan is fully approved, the next stage is ordering loan papers and delivering them to your settlement agent. At your closing, you will sign and initial where needed and bring sufficient funds to close. Once your settlement agent determines you’ve signed everything properly and followed the lender’s instructions, the loan is delivered back to the lender for the final stage: ready to fund. The lender reviews the signed documents and makes sure the settlement agent followed the instructions properly. Once this determination is made, the lender authorizes the release of your funds.