THE MORTGAGE PROCESS

PREQUALIFICATION – 15 Minutes to 2 Days:

• Talk with the prospective buyer(s)
• Lender pulls credit ceport
• Discuss with lender to find best loan program to fit needs
• Get individualized Pre-Qualification Letter for a Specific Property.
• Complete an application

ASSIMILATE DETAILS OF OFFER/COUNTER OFFER - 1 - 4 Days:

• Have lawyer, if applicable, to review contract
• Inform Loan Officer of likely outcome as soon as possible, even prior to the final acceptance
• Include Loan Contingency Dates and Close of Escrow dates as well as other important details such as the number of floors of the building, litigation, owner-occupancy ratios for condominium projects, Planned Urban Development (PUD) classification, multiple offers or possible valuation difficulties

OPEN AND PROCESS TRANSACTION - 3 to 7 Days:

• Borrower Should Order Home Owner’s Insurance ASAP!!!
• Order Appraisal (turn time is roughly 5 to 15 days)
• Order Title Report (3 - 7 days)
• Get Escrow Instructions
• Get Home Owner’s Association Documentation (if applicable)
• Verify Employment
• Verify Income
• Verify Assets
• Lock the Interest Rate to accommodate the actual Close of Escrow term (depending on “market movement” this may be done immediately or kept in a “floating” status).
• Follow up on any missing items and possibly resend.

SUBMIT TO LENDER – 3 to 5 Days:

• Submit to underwriters
• Appraisal review, if applicable, 2-4 days
• Issue CONDITIONAL Loan Approval / Loan Commitment

COLLECT AND FORWARD CONDITIONS TO LENDER – 2 to 3 Days:

• Underwriter Review and Acceptance (sign off)
• The condition may be as simple as an “updated pay stub” or a potential “deal killer” such as the requirement to provide the last 2 years tax returns on an Easy Doc Qualification
• Mortgage Insurance, Appraisal Review or Condo Project approval generally take a few extra days

DOCUMENT DEPARTMENT – 2 to 3 Days:

• Lender prepares and print loan documents

TRANSPORT TO ESCROW – 1 to 2 Days:

• Set and go to Settlement

LOAN DOCS RETURNED TO LENDER FOR FUNDING - 0 to 4 Days:

• Final compliance review.
• Many lenders require that the borrower’s balance of funds are forwarded and received by escrow BEFORE they will release their funds.
• Usually, same day funding for purchases (except for California)
• Usually, 4 business day for refinances (settlement + 3 days for rights of recission)

RECORD – 1 Day:

Total Estimated Time 15 - 28 days.

Although this is a rough estimate of the required time frame, in some instances, with EVERYONE participating, a loan can be completed from start to finish in 7 to 10 days.