The time it takes to complete the loan process varies for each application. Here is a list of the stages required to process a mortgage. Remember that completing your application accurately and fully will help expedite the process.
Processing
After you apply, a loan processor will collect documents and verification to support your request for a loan. The time in processing will vary depending on the type of loan and how quickly the processor receives the documents needed. Much of processing involves help from other sources, such as:
Appraisal – An appraiser will judge the value of the property, generally based on the recent sales in your market.
Credit Verification – We’ll request a credit report through a credit reporting agency to verify your outstanding debts and payment history.
Income Verification – In addition to the documents we request from you, we’ll ask your employer to verify your income.
Asset Verification – To confirm that you have sufficient funds required to close on your mortgage.
Previous Housing Verification – We’ll request the history of your rent or mortgage payments from your lender or landlord.
Underwriting
Once the application is processed, your processor will submit the complete package for review. The underwriter compares your loan request to the guidelines of the investors for the type of loan. Then the underwriter issues a decision on your application based on established investor guidelines.
Closing
Closing occurs when you sign the papers for your mortgage loan, and when the property is transferred, if your loan is for a home purchase. Most closings take place at a title company or a real estate office.
