Steps Of The Loan

This is the process map or milestone map 

Your loan can get hung up at any step along the way.

Upon submission of your mortgage loan application, the first step is to process the loan. Your credit report is then inputted to an automated underwriting system along with your application. The processor will then determine what documentation will be needed based on the findings of the automated underwriting system.

In cases where a manual underwrite is necessary because the loan doesn't pass the automated stage, it won't be clear what domentation is required until the underwriter reviews the loan. In any case, there are some very basic documentation requirements that will be necessary to submit at this initial step.

With this basic documentation submitted to underwriting, the next step is approval conditioning. Assuming the loan is conditionally approved, it will be approved subject to the documentation being satisfactory to the underwriting guidelines.

You should hold the loan officer accountable at each milestone. This is used for tracking purposes.

This is a critical time in the process as communication between underwriter to loan processor and ultimately to the loan officer can breakdown and delay or worse turn down the loan.

Emotions can run high as important deadlines are missed and the process seems to be unending.

Next, there will be a final approval document collection review and final underwriter review to obtain the clear to close (CTC). 

The busiest loan officers are often the most communicative and organized. You will hear from them before you think of the next question.

Automated communications from the lender or online access to your loan while it's in process will help by giving you updates at a each milestone, but still, it is the loan officer's job to keep you updated.

You are almost at the finish line, but still not done. You will need to receive final loan docs to be signed and notarized. Once reviewed by the loan funder, and funding conditions are cleared, the loan proceeds will be wired to your title company so they can record the necessary documents and deeds at the recorder's office of the county in which the home is the located.

Loan officer tips

Your Loan Officer is the Bridge to Communication

What should you get your loan officer to communicate with you? 5 Tips for better communication with your loan officer. Tips For Keeping The Loan Process On Track. 

If you've been pre-approved, that is good news.

At this point, be diligent and stay on top of the process more than ever. A pre-approval is simply a checkpoint. It's good news, but don't let down your guard. However, if you've built your best history, planned and prepared, you will probably be in good shape. This is a process, so hang in there.