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Updates Throughout the mortgage loan process, we provide you with updates. If you need immediate assistance, we're just an e-mail or phone call away. Managing Your Application Step One Receipt of Application Upon receipt of your application, we review your application with you for clarification and accuracy. Step Two We order your Credit Report to establish your Qualifying Score and to compute your DTI Ratios. Step Three We order your Property Profile Detail Report to verify County Recorders Office Records on your property. On purchase transactions, Step Three is performed when we have a copy of your Purchase Agreement. Step Four We subscribe to DataQuick Property Finder, which allows us to research data on sold properties comparable to your's, in your market area. Next we research the MLS for listings on properties in your market area. We completed three* of five steps appraisers use for determining property value. 1*. County Recorders Record. 2*. Recent Sold Properties. 3*. Current MLS Listings. 4. Appraiser's inspection of property. 5. Completing Appraisal Report. We are prepared to challenge an under-valued appraisal. Knowing your property's approximate current value, county records on your property, your qualifying credit scores and your debt-to-income, we know how to properly structure your loan package. Now we review current rate sheets, products and turn-times with you to determine which lender is best for your situation. On purchase transactions, Step Four is performed when we have a property address. Step Five Good Faith Estimate Knowing the above, we estimate your settlement costs. Then we send you our Good Faith Estimate. Upon your acceptance, we proceed to Step Six. Note: On purchase transactions we cannot send you our GFE until the purchase property address is known. Step Six On a GSE backed mortgage, we perform DU. We need your Initial Required Loan Documents, which we have discussed, along with your signed and dated Loan Disclosures. Once DU is completed or if it is not a GSE mortgage, we proceed to Step Seven. On a Purchase Transaction, with a "DU" Conditional Loan Approval we issue your "Pre-Approval" Letter. When you have a Purchase Agreement we go back to Step Four. Although, we suggest you contact us prior to making an offer on a property so we can run "Comps" to see if the value is there. If you already have a Purchase Agreement and the purchase price is above "Comps," we suggest you negotiate a lower sales price or make you aware of additional funds that may be required at "Settlement." Once this is resolved, we proceed to Step Seven. Step Seven We order your Preliminary Title Report and open Escrow. On purchase transactions Escrow has been opened by the Seller. We've structured your lender submission package according to DU findings. With our DU approval, your loan package is ready to be electronically submitted to the lender. Step Eight Loan Package Submitted to Lender When the lender receives your loan package, it is recorded and then sent to the lender's "set-up" department. They assign your file to an underwriter. At that point the lender sends you their initial Truth in Lending Document. When the lender receives notification that you have received their "TIL" or three business days since the lender's mailing, we are allowed to place an appraisal order through their Appraisal Management Company (AMC). Usual time-frame for receipt of completed appraisal is about 5 Days. This HVCC AMC Regulation does not apply to Portfolio Lenders. We are still allowed to use our preferred appraisers when they are the lender of choice. Rate Lock You can usually lock-in your loan upon lender's notification of your receipt of the lender's Truth-in-Lending Disclosure or 3 business days of sending their TIL, whichever is sooner. When that time arrives you'll see the lender's current rate sheet to determine the rate you wish to lock or if you wish to continue to "float." Step Nine In Underwriting The lender's underwriter will thoroughly verify all documentation received in your file. Upon completing this task, we receive "Conditional Approval" on your file. We are provided a detailed list of required "Conditions" (additional information and/or documentation) for the Broker, Escrow and Lender to fulfill. We'll provide you with this list, annotating which items (Broker Conditions) that you are responsible to provide. All Conditions you'll provide are returned together with your 800# fax cover sheet, to loan processing in a prompt manner. After the underwriter verifies our Conditions, we'll either receive more Conditions or the underwriter "Signs-Off" on all Conditions. When your Conditions are "Signed-Off" your file goes to their Auditing Department. Upon satisfactory completion of a Preliminary Audit, we receive a "Clear-to-Close." Step Ten In Escrow Upon receiving your "Clear-to-Close" we request your Initial "Closing Documents" to be sent to Escrow. Escrow may also have additional "Closing Conditions" they must fulfill at this time. Upon completion of Escrow Conditions and your Initial Closing Documents, Escrow returns them to the lender's funding department. The funder reviews Escrows documents. Then your file goes to "Funding Review." Your file receives a Secondary Funding Audit. We may or may not have additional "Funding Conditions." If we do, these Conditions must be reviewed and "Satisfied" prior to "Final Docs" being sent to Escrow for "Closing" (Signing). We coordinate the document flow with Escrow. Escrow completes your "Final Closing Documents." Working together, our goal is for your "Closing" to go smoothly. Step Eleven At Settlement When Escrow has completed your "Final Docs" you are ready for "Signing." You will provide payment of Settlement Fees at time of signing by Certified Check. Signing may be performed at Escrow or your residence. After signing has been performed, Escrow returns your Signed Closing Documents to the lender. The lender's Auditing Department performs their Final In-Depth Audit upon receiving your signed Closing Documents. This may take several days. There's still a small possibility we may receive additional Conditions. Once completed, Escrow is given a "Wire" with the funds for your loan. Escrow performs a final accounting of funds and then records your transaction with your County Recorder's Office, prior to releasing funds. Step Twelve Happy Funding On a purchase, 2nd home or investment property refinance, release of funds occur on the same or following business day of Recording. The time-frame depends upon your County Recorder's Office. One to two days is normal. On an owner-occupied refinance, funds are released after your three business day rescission period has elapsed. Time Frame for Entire Process Currently Exact Time-Frames Are Unknown Rates are still at historic lows. Lenders are already extremely busy. Many employees that were let go in 2007 & 2008 haven't returned. Training new employees is time consuming and costly.  With new 2010 RESPA Regulations, average days to closing has yet to be determined. These New Regulations require additional time and costs that have not been completely determined for everyone involved in the loan process. Fees surely will rise and time-frames will be longer. Interest rates are inching upward. Federal Government Mortgage Backed Securities to $1.25 Trillion end March 31, 2010. Predictions are rates may begin to rise back to 2007 / 2008 levels starting January, 2010 and rates may be up a full percentage point by Mid-April. The time to act is now. You Will Always Be Kept Informed of the Exact Status of Your File ###
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