The Loan Process begins with an initial consultation between the borrower and the broker. During the first conversation, it is extremely important for the borrower to discuss what they hope to accomplish with their new investment in real estate. It is then the duty of the broker to best determine how to accomplish that goal, with the current qualifications of the borrower. Unfortunately, borrowers often end up in the wrong mortgage product because their lack of communicating what they truly intend to do. Borrowers also must remember to be upfront and truthful with their broker from the start. Remember, the broker acts as the borrowers representative and structures the loan for presentation to underwriting. They will help their borrower around any weaknesses they may not want to disclose to underwriting. From the conversation the broker will take a written loan application....After taking a complete application, one of the very first things that the loan agent must do is access the applicant's credit report. A competent mortgage professional will examine not only the credit scores but do a line by line analysis of the report and highlight any information that could be considered derogatory. Once the report has been examined the Loan Officer will review it with the applicant and get their response to any derogatory information.
After all of the documentation is collected we will send your loan package to underwriting for evaluation. Underwriting will then decide if the proper information has been sent or if they want to see additional information to make a final determination for the mortgage.
From the time the application was taken the broker has 3 days to send you RESPA compliance forms.
An appraisal will be ordered as to support the value of the property. The loan is based off the overall value of the property and is
crucial to get the appraisal done right away. Typical time for appraisal vary from area to area depending on demand and market
conditions.
The underwriter may ask for additional information on a case by case basis, considered a stipulation of funding.
After deciding on the loan program, the applicant must supply the necessary income and assets documents (W2's,
pay stubs, bank statements, etc.) as required by the chosen loan program. Because these documents are essential to the underwriting process, the application package cannot be submitted without them. Therefore, it is important that the applicant present them without delay.
