- App Completed – description (all six essential elements of a mortgage application are collected (borrower name, ss#, income, property address, loan amt, est. home value)
borrower ACTION: Double check any outstanding documents are being provided ASAP (ie missing pages of bank statement, contact info for home insurance agent, etc…)
LHL value add: We are shopping for the best interest rate and loan terms. We are reviewing all income/asset documents provided and will reach out if any additional items are needed. We are laying the groundwork, telling the loan story to make it as easy as possible for processing and underwriting to approve your loan application.
- Sent to Processing – description – most of your requested documents are in place now (paystubs, bank statements, etc.) This is where all the behind the scenes magic happens – irs tax transcripts, flood certification, employment verification, home insurance updates, payoff request, closing scheduled, etc..)
Borrower ACTION: If you don’t already have home insurance in place, now is the time to do so. I have a great local insurance agent and am happy to give a referral for a second opinion.
Please help us help you. Be responsive to any requests from processing to avoid unnecessary delays with your closing.
LHL value add: Our job is to make approving your loan simple; for everybody. Your loan processor helps make this happen. Lending guidelines often doesn’t follow common sense:
- Like verifying a spouse allows their money to be used to purchase their own home
- Like verifying a self-employed person is employed.
- Like verifying an applicant’s employment when they collected unemployment for 2 months
We don’t make the guidelines, but we understand them. And we take extra time during this step to avoid many of these seemingly silly questions later in the process.
- Appraisal Ordered – description – A critically important component for lenders is knowing the value of the collateral being used for your loan. This is your appraisal. A state licensed independent appraiser is assigned from our appraisal panel to measure, take photos, and complete your appraisal assignment. This can take anywhere between 1-4 weeks which is why we’re getting started up front!
Borrower ACTION: If able, please do whatever you can to help accommodate appraiser access to the home as quickly as possible. Appraisers want to help and are often delayed due to unreturned phone calls and emails trying to access the property. If you have specific information/documentation about unique features of the property like added square footage or custom upgrades its helpful to have this readily available for appraiser at the time of inspection. Appraisers are bound by a professional and ethical code of conduct and any attempt to impact their independent valuation is a violation of AIR (https://singlefamily.fanniemae.com/media/4711/display
LHL value add: We are monitoring the appraiser timeline from the day an appraiser accepts the assignment to when the inspection is scheduled to when the report is scheduled to be completed. We’ll keep you in the loop along the way and stay on top of any issues or concerns so you don’t have to. Everybody loves a high appraisal on their home. Occasionally low appraisals happen to. If that’s the case we’ll regroup and discuss available options. We’re in this together!
- Submitted to U/w – description – Your loan processor has completed the up-front review of your file and ordered third party services and your file is now in line to be reviewed by an underwriter. WooHoo! The underwriter follows guidelines based on your specific loan program to ensure income, assets, credit and collateral
Borrower ACTION: Awesome! Your loan is in line to be underwritten and we should be hearing your initial approval feedback in the next few days. Your loan processor will circle back with a list of initial approval conditions (ie provide an updated paystub, explain something on credit, verify the source of a large deposit into your bank, etc…) This is a totally normal part of the process, do not worry! At this stage it’s important to be sure any money you may be using for closing day (ie down payment, closing costs) has already been deposited into your bank account. For any non-payroll deposits (ie gift funds, expense reimbursements, etc.) please be sure to discuss with your loan officer to avoid any confusion in underwriting.
LHL value add: ?
- Appraisal Received – description – Your appraisal is complete and you’ve been emailed a copy for your records.
Borrower ACTION: Appraisals pack a TON of information about the square footage and marketability of your home and we encourage you to keep this document on hand for future reference. The bottom of page 2 of 6 indicates the “sales comparison approach” which is the home appraised value. It’s important to see in the same section that the appraisal was made “as is” to avoid any extra work needed to the home and follow-up visits by the appraiser
LHL value add: At this stage we’re receiving title work and home insurance figures back from your closing attorney and home insurance agent. This important info enables us to start zeroing in on your estimated cash due at closing. We’ll be sending you an initial Closing Disclosure confirming the costs associated with your loan transaction a minimum of 3 days before closing. This allows some breathing room to ask any further questions and avoid any surprises on closing day!
- Clear to close – Your loan is fully approved and ready for closing.
BORROWER Action – Now its time to schedule closing. Know where you need to be and when you need to be there and how much money you’ll need and to whom it needs to be paid. All owners of the property (including spouses) will need to be present for closing.
LHL value add: It’s truly a team effort. At this stage we’re working with your real estate professional, appraiser, underwriter, closer, processor, and insurance agent to deliver a smooth closing experience!
- Closed – WooHoo! Congratulations! You did it! You’ve signed all your closing paperwork and we’re thrilled to have helped.
BORROWER Action – At closing you will receive a “First payment letter”. Be sure to keep this accessible as the first mortgage payment you make you’ll need the info on here to know where to send payment. You’ll be able to setup auto-pay soon, just not right away 😊.
LHL value add: With your mortgage transaction complete, know that our job certainly isn’t. We’re here for you and always just an email/text/phone call away to answer any mortgage related questions you may have. Thank you again for entrusting us with your home financing needs. Please don’t keep us a secret!