The Loan Process
Applying for a home loan may seem like a daunting task, but it does not have to be. At MVP Mortgage, we believe that the more you understand about the home loan process, the easier it will be. Knowledge is power, and we want you to feel comfortable with your choices. We’ll give you the hands-on help you need, to compare choices and complete forms.
Application:
Our Mortgage Brokers will meet with prospective borrowers (typically face-to-face) to begin the actual loan application process. Prior to this first meeting the prospective borrower will be asked to provide certain documents. Documents such as pay stub and bank statements are used to paint the best financial picture of the borrower.
Discussion during this meeting will center on the needs of the borrower. Questions like: "How long do you plan to be in this home?" and "Are you a first-time home buyer?" will help us better determine the most feasible loan program to discuss. Several potential loan programs may be discussed as well as the advantages, fees and down payment options.
The Mortgage Broker will complete the loan application form during this meeting. The loan application identifies the property being financed, the source of down payment, the borrowers’ employment, assets and liabilities. The loan application will also include loan type, term and rate. Along with the loan applications the borrower will be provided with certain regulatory disclosures.
A Good Faith Estimate and initial Truth-in-Lending Disclosure will be sent immediately following this meeting
Mortgage Processing:When all of your documentation is received it then goes to a processor who verifies and validates all of the information to be true and correct. Verification requests may be sent to your employers, mortgage holder/landlord and lending institutions. This is done by fax when possible. It is usually during this time frame that the appraisal and the title policy are ordered.
When all the information is collected the processor then verifies that basic lender loan requirements have been met. The file is then packaged in a manner the lender specifies. The completed package (including the appraisal and title report) is then sent to the underwriting department either in house or to a lender-specified location.
The processing of your loan usually takes about one to two weeks but it can often be delayed when third parties do not respond to the validation requests or appraisals are delayed. If your loan qualifies for DU (Desk top Underwriting) or Loan Prospector, these are computer automated systems, the documentation requirements are often cut in half and depending on the volume of the loan processor, can be completed in three to five days.
Mortgage Underwriting:The underwriter reviews your loan package to make sure it conforms to all the guidelines required for that loan product. They also review the appraisal and title report and may do additional validation of employment, mortgage payments, and credit. And, anything else they feel is necessary to document your loan. They have ultimate power and decision authority over the approval of your loan. The time required to do this is driven by the volume in the market. If the market is flooded I have seen it take two weeks but under normal conditions it only takes three to five days.
Clear to Close:When the loan officer gets the clear to close he then schedules and coordinates with all the parties the time and location to sign the final documents to close the loan. This normally only takes an hour to schedule.
Closing:When everything is scheduled the lender then draws the document package and sends it to the closing company. This can be done by overnight delivery, fax, or electronically. It can take one to two days. You meet, sign the papers, and pick up the keys.
MVP’s Processor will coordinate with the borrower and the title/escrow company a date and time to sign the documents. We strive to ensure every closing takes place as smoothly as possible.
Guidance
Our professional team will guide you through the entire mortgage process.
