Bridging the Gap
Once you've submitted your loan application, it triggers a series of events that must take place before you get your loan approval.
Within three days of submitting your application, we will provide you with a Loan Estimate, a form that details the loan you've applied for. This is a summary of what your loan will look like if you decide to move forward.
Once you decide to continue, the application goes to the processor, who checks that all the necessary paperwork is present. An appraisal is also ordered on your prospective property
At this stage, a licensed third party will evaluate the property to ensure it's worth the sales price. The appraiser will look at the home's condition, age, and size, and will compare the property to other home sales in the neighborhood and consider the replacement cost of the property.
Once the processor has compiled a complete loan file (i.e., the application and all supporting documents), the underwriter reviews the application in detail to make the final decision to approve or deny your mortgage loan. This includes reviewing your employment history, credit history, and the appraisal report. The underwriter also ensures your mortgage meets current loan product guidelines. You may be asked to provide additional documentation, which is not unusual.
Once your application is approved, you'll receive a loan commitment letter, which outlines the details of your loan, including the amount being borrowed, the interest rate, and the term or repayment period.
After you've received your loan commitment, the next step in the process is closing on your home!
What NOT to Do During the Loan Process
All of these factors could impact your eligibility for a loan and delay your final closing, even if you've already been approved.