Step by Step Process
Getting a loan is a 3-way communication between you, your mortgage broker (us), and the lender. See below for a detailed breakdown of the steps involved in getting your loan.
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Purchase
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Refinance
Prequalification
- Yousend in essential documents so we can determine how much you can qualify for
- Together we determine a suitable loan program and loan structure
- Weissue pre-approval to your realtor and you (can take as short as 24-48 hours depending on complexity of your scenario)
Submission
- Welock in the interest rate with your consent
- Lender uses the interest rate to issue a loan estimate (LE) within 3 days with a breakdown of estimated closing costs
- Yousign and acknowledge the LE (required by government for us to move forward)
- Weorder the appraisal and prepare the application package and disclosures for you to sign
- Yousign loan application and disclosures
- Wesubmit your loan to the lender
Loan Approval
- Lender issues conditional loan approval with a list of conditions to be fulfilled
- Wereview the conditions with you
- Youprovide all requested conditions within 24-48 hours, and have a conversation with your realtor about contingencies
- Youget a quote for homeowner’s insurance and send the declaration page to us
- The lender issues a closing disclosure (CD) similar to the LE for you to review closing costs
- Yousign and acknowledge the CD. This starts a three-day waiting period before final loan documents can be signed.
Conditions Cleared
- Lender will review and sign-off conditions in a few days (note: lender may counter with further conditions upon review)
- Once all conditions are cleared, a final loan approval is released
Sign Loan Documents
- Lender sends loan documents to the title/escrow company, and title/escrow prepares loan documents for signing
- Wereview the estimated closing statement & note with you and make sure all numbers are correct before signing
- Title/escrow company sets up signing appointment with you
- Yousign the legal documents at the title/escrow appointment
Funding and Recording
- Lender may request funding conditions
- Yousend in funding conditions (if any), and wire the down payment to the title/escrow company
- Lender funds the loan, and title/escrow records the loan next day
Congratulations!!
Prequalification
- Initial phone conversation to understand your goal and purpose of refinancing
- Yousend in requested documentation
- Wereview and confirm your qualifications
- Together we determine a suitable loan program and loan structure
Submission
- Welock in the interest rate with your consent
- Lender uses the interest rate to issue a loan estimate (LE) within 3 days with a breakdown of estimated closing costs
- Yousign and acknowledge the LE (required by government for us to move forward)
**Appraisal is one of the most consuming steps in refinance. Please sign the LE as soon as you receive it. - Weorder the appraisal and prepare the application package and disclosures for you to sign
- Yousign back loan application and disclosures
- Wesubmit your loan to the lender
Loan Approval
- Lender issues conditional loan approval with a list of conditions to be fulfilled
- Wereview the conditions with you
- Youprovide all requested conditions within 24-48 hours, and have a conversation with your realtor about removing contingencies
- The lender issues a closing disclosure (CD) similar to the LE for you to review closing costs
- Yousign and acknowledge the CD. This starts a three-day waiting period before final loan documents can be signed.
**CD is another critical step. The 3 days mandatory waiting is usually the bottleneck for refinance. Please sign the CD upon receipt
Conditions Cleared
- Lender will review and sign-off conditions in a few days (note: lender may counter with further conditions upon review)
- Once all conditions are cleared, a final loan approval is released
Sign Loan Documents
- Lender sends loan documents to the title/escrow company, and title/escrow prepares loan documents for signing
- Wereview the estimated closing statement & note with you and make sure all numbers are correct before signing
- Title/escrow company sets up signing appointment with you
- Yousign the legal documents at the title/escrow appointment
Funding and Recording
- Lender may request funding conditions
- Yousend in funding conditions (if any), and wire funds to title/escrow company (if applicable)
- Lender funds the loan, and title/escrow records the loan next day
**If subject property is your primary home, there is another mandatory 3 days recession period before the loan can be funded