Understand your needs and goals
Decide loan program, loan term, down payment and rate. Discuss with loan advisor what your needs are. Based you on credit score and down payment, loan advisor will provide you options. You should price and compare different loan program on the site yourself. Please use the “comparison” option to see the benefits and cost for each loan program.
Start a loan application
We will send you a dropbox link. Please create a login and password and share documents. Answer information regarding employment, residence history for last 2 years and other basic information like Solar, HOA, Trust, Residency Status and Employment authorization permits.
Lock the rate
Please shop around before making a lock commitment. It cost money and time to lock the rate. If you are uncertain about loan commitment, please do not submit documents and loan application. Most of the loan rates are locked for 30 days. Loan process is time sensitive and it is critical you provide document, acknowledge disclosure with 8 hours of the request from loan processor. Lock extension are very costly. It cost 2.5pbs per day to extend the lock. For example it cost $100 per day for a $400,000 loan amount.
Loan Application Submition
Loan broker and loan processor will register your loan application to the lender and submit your personal documents (w2, tax, bank statement, pay stubs, contract, addendum, lender specific disclosers) to lender. Some lender specific disclosers need wet- signed such as 4506-T, California addendum to loan estimate, Anti steering, Intent to proceed, borrower authorization and social security authorization. Loan processor will send you those.
Lender send disclosers through their portal including LE: Loan Estimate by email. Create login and password to setup an account on lender portal /website. Make sure you review all disclosers and acknowledge them. There is no document you have to print or wet sign. After reviewing document on the portal, make sure to press “FINISH”. Please contact loan processor if you need help.
Apprisal is ordered
Need credit card (visa/Master only); No American Express, No Personal Checks, No Debt Card. Apprisal is ordered by lender and completed by a 3 rd party - AMC (Apprisal Management company). To avoid any biases influence, law prevent buyer, seller, loan officer, seller and buyer agents to contact appraiser. He/she inspect the property and get the value of the subject property by comparing 3 sold homes sold in the same area. It takes 3 to 5 days for the report to be completed. You will receive notification and access report on the lender portal. Average appraisal cost is about $500.
Loan Approval It take about 2-3 days for the lender underwriter to review loan application and your financial documents and provide conditional loan approval. Keep in mind this is only initial approval and does not mean lender is ready to give you loan.
Decide loan program, loan term, down payment and rate. There are no issues, if the Apprisal value comes higher. Your agent can now remove Apprisal contingency if the value comes at the asking purchase price. You may negotiate with seller if the Apprisal came low.
Clear to close
CTC (Clear to close) / Final Approval – After reviewing the documents, underwriter will provide CTC – clear to close. It takes about 1-2 days to review all conditions, provide final clearance (approval) and clear the loan to funding department. You agent can now remove loan contingency.
Lender will notify you and send another important document thru portal called CD – closing disclosers. This is a document, which finalize the loan terms including cash to close, loan amount, interest rate and itemize the closing cost. Please do not prepare any cashier check or wire the amount based on the cash to close on the CD. Wait for the title company to tell you the dollar amount. It is still possible the cash to close amount may change for unknow reasons. Review the CD on portal and let loan broker if there are discrepancies or if you have any questions. Lender closing department will email final documents only after you acknowledge CD. There are 3 days waiting period between the time you acknowledge the CD and sign the final documents.
Lender closing department and escrow officer work together in balancing the final amount. It takes 1-2 day for this step. Only after balancing, the closing department send the final document to escrow company. After receiving documents, title company will schedule signing with you. It takes 4-8 hours for title company for scheduling. They will assign a notary for you. You have option to sign final document in front of notary any place convenience to you. It could be at escrow office, your workplace or at your home. Most of the loan document are just the “hard copies” of what you already have viewed on the portal. It takes about 20 to 30 minutes for signing. Make sure all borrowers must have current government issued photo identification (State-issued driver's license; State-issued identification card; U.S. passport issued by the U.S. Department of State; U.S. military ID; State, county and local government IDs; Permanent resident card). Title company will accept personal check if the amount is less than $1499. Prepare cashier check or wire the funds to tile company if amount is greater that $1500.
Funding / Closing / Recording
Notary will bring all signed documents to title company and escrow officer will overnight document to lender. After reviewing the loan documents, the lender’s closing / funding department will wire the funds before 1 PM. It may take 1-2 days for the funder to do this last step. After receiving the funds, escrow officer will disburse the funds to seller, insurance agent, real estate agents and send the deed to be recording at county. For purchase transcation, only after recording confirmation you have right to your home and enter it. Your agent will coordinate the delivery of home key to you.