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What does the home loan process entail?

If you are borrowing money from a lender to purchase real estate, you can generally expect to follow these steps as part of the loan process:

Step One – Application

The lender will have you fill out an application.

Step Two – Documentation

After you submit your application, the lender will request documentation to verify the information you have provided.

Step Three – Loan Submission

With documentation in place, the lender submits the application and documentation as a package to the underwriter for approval.

Step Four – Loan Approval

The underwriter reviews the paperwork and makes a determination whether or not to grant the loan. Approval generally takes 24 to 72 hours. All parties involved are notified.

Step Five – Loan Documents

After approval, loan documents are drawn up and sent to your escrow officer at the title company. The escrow officer and lender work together to create a closing disclosure or settlement statement that includes all closing fees and any payoffs to clear liens. The escrow officer will then make an appointment for you to sign all final loan and escrow papers.

Step Six – Funding

Once the loan documents are signed, they are returned to the lender, who reviews the package. If the loan documents pass final review, the loan funds are deposited with your escrow company, which disburses the funds.

Step Seven – Recording

All final documents are recorded with the county to show transfer of ownership.

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