The Process << backFirst a loan consultant will sit with you and discuss your individual specific needs. From there, he/she will determine the best financial strategy and loan program for you and your situation. The following is a brief look at a typical loan process.
(Note: The steps required in the process may vary depending on your particular program and circumstance.)
Purchase / Sale Process
- Listing Agreement – Seller traditionally puts his/her home on the market by signing a listing agreement with a licensed real estate agent. From that point, the agent proceeds to market the home in order to obtain a buyer.
- Offer Made – Once a buyer identifies the home, an offer is made with specific price and conditions
- Offer Acceptance and Negotiations – After the seller and listing agent receive and review the offer, they either accept the offer or counteroffer. The counteroffer phase continues back and forth until price and terms are agreed upon. If no price and/or terms can be agreed upon, the purchase/sale process ends here.
- Escrow Opened – Once the offer is accepted, escrow is opened and the purchase/sale process officially begins.
- Select Loan Program – During escrow, sometimes before, the buyer consults with a mortgage professional and determines the ideal loan product for him/her. (see loan process)
- Inspections Done – During the escrow period, a timeline is traditionally set to have certain inspections done on the designated property (i.e. physical inspection, termite/pest, etc.).
- Finalize Terms After Results of Inspections – Many times the result of the inspections will initiate more negotiations on what repairs are to be made and which party is to shoulder the costs.
- Appraisal – A certified appraiser will visit the designated property and assess its current market value. Much of the loan and purchase/sale process will revolve around the results of the appraisal.
- Loan Processing – During the escrow period (typically 30 days) the loan is processed (see loan process).
- Recording – Marks the official end of escrow and transfer of home ownership.
- Appraisal – A certified appraiser will visit the designated property and assess its current market value. Much of the loan and purchase/sale process will revolve around the results of the appraisal.
- Submission – In this stage you will submit your loan application along with all required documents to proceed with the processing of the loan.
- Underwriting – Once your loan has been submitted, it will go to underwriting where the lender will determine if your loan is approved. Your file will be underwritten to obtain loan approval and will often come with conditions. From there, these conditions must be met in order to get to the signing of final documents also known as "doc signing" or "going to docs".
- Final Documents – This stage is the actual signing of all loan documents and is notarized. Afterwards, all signed documents are forwarded to escrow to proceed with funding and recording.
- Funding and Recording – There are traditionally a series of final conditions to be fulfilled prior to the actual funding of the loan. After those conditions are met, the lender and escrow work to provide the funds for the loan and then proceed to have it officially recorded.