Home Loan Process

Step 1

Before going to look at homes you need to be pre-approved. I will do a quick 10 minute loan application with you. This is done over the phone or in person. At that time I take down all your personal, banking and income information. Then I will go over the loan that fits your needs, down payment, monthly payment, interest rate and closing cost. Next, I run your loan for a pre-approval. The pre-approval, is a COMPUTER pre-approval. It is based off the information you gave me over the phone. You’re not locked into an interest rate at this point.

Step 2

You’re pre-approved, you may start looking for your new home, YAY! I then email you a list of documents needed to verify the information you gave me over the phone. Its very important to email me, fax me or meet me in person to give me the needed documents immediately so we can get this step completed and we are not in a rush once you find a property. Below is the basic list of documents typically needed:

Most current past two years W2’s
Recent 30 day pay stubs
Driver’s license
Recent 2 months banks statements (need actual bank statements)
Recent 2 months 401 k statements if your using a 401k for down payment’
If your getting a gift, let me know and I will let you know what’s needed for that
Don’t extend any new credit or buy a car

Step 3

You have found a property and we have an accepted offer. I should have all your documents I requested in Step 2. At this point, I will order the third-party fees (closing costs) for your loan from the title company and we DISCLOSE on your home loan. Disclosing is when we email you, your initial loan application that I took over the phone, loan estimate and home loan disclosures based off this specific property for your signature. These loan documents are just the initial documents, not the final documents; any typos or corrections are done internally after you have electronically signed. You will need to open the email follow the instructions in the body of the email and electronically sign everything immediately. By doing so, this allows me to submit your loan, order the appraisal and stay on track to meet our closing date. If you have questions while you’re going through it call me. Do not be alarmed when you see the loan estimate, it is just an estimate and the fees can be off it is updated to the correct amounts once the bank gets your loan package and the interest rate is locked in ( you are not locked in when the initial loan is disclosed). The reason some items are not disclosed at the time of disclosing is, because the bank has not seen the loan package yet and is unaware of any seller credits or earnest money given. These are applied after the bank reviews the loan. Banks are regulated and audited so they cannot charge you for anything but true costs. It’s a violation and they risk huge fines, imprisonment and the loss of the right to do business.

Step 4

Submit your loan and documents provided to the bank for underwriting and order your appraisal. Underwriting is when the bank reviews all the documents you gave me. They will let us know if anything else is needed. The appraisal is approximately 750-850 and you are responsible for paying this. I will call you and get your credit card information to pay for the appraisal.

Step 5

Bank written approval. The bank has given me a list of items needed from you in order to issue final loan approval. I will reach out to you by email and phone to let you know what these items are. Its imperative you return these items to me within 48 hours so we can stay on track for closing. One of the conditions will be homeowners insurance. You will need to reach out to your insurance agent that does your auto insurance and get a policy now set up for homeowners insurance on your new home. The homeowners insurance is the insurance that insures your home in case it burns down. Once you have it set up and finalized you will need to give me their name and number and I will have my processor contact them for the insurance binder. In order for them to give me the binder you will need to give your insurance agent permission to release information to KG Processing Robin Parker. She is my processor and orders this on your behalf.

Step 6

During the process of getting all final conditions the bank has requested and the appraisal back I can now lock in your loan. Locking in means, we lock in the current interest rate for your home loan. I recommend locking after we know the return date for the appraisal. The reason I say this is, because if something comes back needing to be done from the appraisal or there are any repairs needing to be done, we will have time in the 30-day lock period to get it done. The most competitive rate is the 30 day pricing. Once we lock in your interest rate, we need to close within that designated time frame. If we don’t close by the expiration, we get penalized. I will update you twice a week what the current interest rate is by text or email and if you want me to lock you in, you need to tell me to lock your interest rate. You can also call or text me and ask me the current interest rate if you have not heard from me. I will look, let you know and then you can tell me to lock or not. I can lock your loan up to 4 p.m. Monday – Friday.

Step 7

You have given me permission and I have locked in your loan. Once this happens the bank will disclose/email your locked Loan Estimate that you need to electronically sign. I will text you when it is emailed, because signing it immediately is of high importance and it keeps us moving on track to closing.

Step 8

All your conditions are signed off on and the appraisal is in. We have permission to issue the Closing Disclosure, its super important for you to electronically sign this right away to keep on track for closing. The closing disclosure is the final document, needed for your signature before your official loan documents are emailed to the title company. You may sign your official loan papers 3 days after this document is signed. The closing disclosure will be pretty close to the final number needed for your cash to close, but not exact.

Step 9

The title company has received your loan documents. They will make any corrections, apply credits, balance with the bank and then issue me your closing statement with the dollar amount needed to close. I will review it and make sure it is correct. I’ll then contact you and set up your appointment to sign with the title company and give you the figure needed to close. Please understand that you may need to request time off or come in late that day or leave early to sign your papers. The title co. is open from 8-5. The earliest we can sign is 8:30 and the latest we can sign is 4:00 p.m.

Step 10

Cash to close. If you are signing the day before your scheduled date to close you may bring a cashiers check to closing. If you are signing on the day of your scheduled date to close you will need to wire the funds to the title company the day before you sign. Reach out to me so I can have the title co. email you wiring instructions. If you do wire, please print the document and then call the title co. to verify the routing number and account number before sending the wire. The title company must have the funds the day before closing in order to fund and record.

Step 11

This is the final step, woo-hoo. Signing day! Make sure you have your drivers license with you and a BIG SMILE; this is your day! You will have brought a cashier’s check if it’s the day before closing or have already wired your funds. You will sign all your documents. The title co. will send back to the bank once signed and request wire. The wire is the money for your home loan. Once it’s received the title company will fund and record. Record means, the house is now officially yours

Your realtor will give you your keys. YOU ARE NOW A HOMEOWNER! CONGRTULATIONS!