Here are the six easy steps to the loan process
at Capital Coast Mortgage.
- Getting Pre-qualified
- Choosing the right loan program
- The application
- Processing
- Underwriting
- Funding & Closing
GETTING PRE-QUALIFIED:
Pre-qualification starts the loan process. Once
our loan officers gather information about your
income and debts, a determination can be made as
to how much you can pay for a house. Since different
loan programs can cause different valuations we
like to pre-qualify you for every possible loan
type that you may be eligible for.
In attempting to approve home buyers for the
type and amount of mortgage they want, we
look at two key factors: first, the borrower's
ability to repay the loan; and second, the borrower's
willingness to repay the loan.
Ability to repay the mortgage loan is verified
by your current employment and total income. Generally
speaking, it's preferred that you have been
employed at the same place for at least two years
or at least be in the same line of work for a few
years.
Your willingness to repay is determined by examining
how the property will be used. For instance, will
you be living there or renting it out? Willingness
is also closely related to how you have fulfilled
previous financial commitments, hence the emphasis
on the Credit Report and/or your rental payment
history.
It is important to remember that each loan is
different and each applicant is handled on a case-by-case
basis. So even if you come up a little short in
one area, your stronger points could make up for
the weak ones. It's everyone's goal to try and get you
into a loan that's right for you.
^ TOP
CHOOSING THE RIGHT LOAN PROGRAM:
To properly analyze a mortgage program, you need
to think about how long you plan to keep the loan.
If you plan to sell the house in a few years, an adjustable
type loan might make the most sense. If you plan to
keep the house for a longer period, a fixed loan may
be more suitable.
Shopping for a loan is very time consuming and frustrating.
With so many programs to choose from, our highly trained
loan officers can evaluate your situation and recommend
the loan program that's right for you, thus allowing
you to make an informed decision.
^ TOP
THE APPLICATION
The application is the true start of the loan process
and usually occurs immediately after the discussion
of the various loan programs that are suitable for
you. Our loan officers will either meet with you or
take the application over the phone. With the aid of
our loan officers, you will complete the application
and provide all of the required documentation.
The various fees and closing cost estimates will
have been discussed with you while examining the many
loan programs and these costs will be verified by a
Good Faith Estimate (GFE) that will be included with
your loan application, as well as other disclosures
for you to sign. It's important to note that
a credit report will not be run unless your signed
authorization has been received by our office.
^ TOP
PROCESSING:
Once the signed application and disclosures have
been submitted, the processing of your loan begins.
The Credit Report, Title Report and Appraisal will
be ordered and escrow will be opened. The information
on the application, such as bank deposits and payment
histories, are then verified. Any derogatory credit,
such as late payments, collections and/or judgments
requires a written explanation. The Processor will
immediately begin putting your loan package together
in preparation for submission to the underwriter. During
this time the Processor or Loan Officer may contact
you to clarify some of the information or to obtain
additional information or documentation that may be
required for your specific loan program.
^ TOP
UNDERWRITING:
Once the processor has put together a complete package
with all verifications and documentation, the file
is sent to the underwriter. The underwriter is responsible
for determining whether the package is deemed an acceptable
loan. Shortly after receiving the loan, the underwriter
will notify the processor of their decision and often
times may request additional information from you.
If additional information is required then the Processor
or Loan Officer will contact you immediately to obtain
that specific information. Once all required information
has been forwarded to the underwriter the underwriter
will then sign off on it and forward the loan file
to the funding team.
^ TOP
FUNDING & CLOSING:
The funding team will forward documents to the escrow
company for you to sign. The escrow company will contact
you to schedule the signing and may ask you to bring
additional information, such as homeowner's insurance,
property tax information, cashiers check for your down
payment if it's a purchase, etc. It is very important
that you have your driver's license with you
so the notary may verify your signature.
After the documents are signed, the escrow company
returns the documents to the underwriter who examines
them and, if everything is in order, arranges for the
funding of the loan. Once the loan has funded, the
escrow company arranges for the mortgage note and deed
of trust to be recorded at the county recorders office
the following business day. Once the mortgage note
and deed of trust have been recorded the loan will
officially be deemed closed. The escrow company then
prints the final settlement costs on the HUD-1 Settlement
Form and within 48 hours the disbursements are made.
