The Mortgage Process
Have you ever wondered about what steps your loan goes through before closing? Wonder no more! Here are the steps your loan goes through before you close.
The loan coordinator
Once you finish the application, the loan coordinator takes care of getting everything in order. They make sure that the following items are in order:
- Employment history
- Minimum documentation
- Residential history
- Loan amounts
- Attorney, title, and HOA
If everything is in order, the loan coordinator registers and locks the file and sends it to be disclosed. If not, the file will get sent back to the loan officer to get any necessary items.
Once the application and minimum documentation are verified, the application moves to disclosure. During disclosure, they will compile estimate for all third-party fees, and make sure the title and attorney fees are as low as they can be. Once verified, the loan disclosure and “wet docs” are sent out. After everything is signed, they order the appraisal and title. They additionally send the file along to pre-underwriting. If the disclosure isn’t signed, it stays in the application status and won’t move forward.
After the loan disclosure is completed, the loan is moved to pre-underwriting. The pre-underwriter analyzes the documents received to make sure that the loan qualifies for conditional approval. They will also verify the inspection and make sure they have all additional addendums to any contract that may be in place. If there are any additional files needed, the pre-underwriter will reach out to get those files. The loan will be placed on hold if any critical documents are missing. Once everything is in order, the loan will be submitted to underwriting.
Once all conditions are met, processing releases the early closing disclosure. The early disclosure may have changed due to survey, title, attorney fees, and prorations. If the early closing disclosure is signed, you can close three days later. If it is not signed, you can close seven days later. After everything is signed, the wire is ordered to be released the day of closing, which will be scheduled after signed documents are received.
It’s closing day! At closing day, a cashier’s check to cover final closing costs is needed. For a refinance, there is a three day right of rescission.
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