How Loan Processing Works
- An appraisal is ordered.
- Title to the property is ordered
- A survey is ordered.
- Wiring instructions are ordered for when the loan will close.
- An insured closing letter is ordered.
- A termite inspection is ordered.
- Verification of Employment is ordered.
- Verification of Funds to close is ordered.
- Verification of Rent/Mortgage is ordered.
- Verifications of any paid credit items are sent to the credit bureaus.
- Further documentation is received from the client to update any pending questions (divorce decrees, etc.).
- Taxes are certified for the proper amount for the property with the title company.
- Homebuyer obtains insurance quote. This is typically paid at closing of the loan.
- Mortgagee clause is sent to the insurance company and a declaration page is produced.
- Realtor/title company/builder should transfer information about any homeowners association or condo dues to the mortgage company.
- The title, appraisal, survey, termite inspection, Verification of Employment (VOE), rent, and funds to close come in.
- The above documentation is reviewed by processing and the loan consultant to confirm it matches the loan application, to confirm it will meet the guidelines of the loan program, and to determine if more documentation is required.
- Any necessary changes to the documentation above that require attention are relayed to the homebuyer, buyer’s agent, builder, seller’s agent, client, landlord, title company, employer, surveyor, termite company, bank, etc.
- Once these conditions are cleared, the loan is sent to underwriting for approval, usually by scanned email, fax, overnight mail, or by same day courier.