The financial industry has experienced dramatic changes that include stricter underwriting requirements, increased credit requirements, increased documentation, longer processing times, and fewer available loan products. These factors combined with the reduction or elimination of several 1st Time Home buyer programs, has made the loan process very challenging. Multiline Mortgage understands the latest guideline changes, and our strong lender relationships empower us to complete loans that many lenders cannot complete. Multiline Mortgage is your choice for exceptional service and knowledge, and the following is a generalization of today’s loan process:
Pre-qualification begins with your Multiline Mortgage Loan Officer taking the time to know you and your specific goals and needs. We are Mortgage Professionals that provide exceptional service and have extensive knowledge that we use to find the best options for our clients. We begin the process with an initial consultation with you to gather key information about your income and debts. We also prioritize your goals, so we can determine what loan, loan structure, and preferred lender make the best sense for your situation.
Now that we know what you want to accomplish, the next step is completing a loan application. You will work with your Multiline Mortgage Loan Officer to complete the initial loan application. The actual loan application takes between 15 to 30 minutes to complete. We will then securely send you a copy of the loan application to sign. In addition, you will need to supply us with all of the required documentation that our lenders require. Various fees and down payments are discussed at this time, and you will receive a Good Faith Estimate (GFE) and a Truth-In-Lending statement (TIL) that detail all applicable closing costs. Your loan officer will also discuss current interest rates, applicable down payments, sourcing of down payment funds, property appraisal fees, and any programs that you might qualify for, such as 1st Time Homebuyer Grants, Purchase Assistance, Seller Concessions, and tax credits. Please note that you will likely be required to complete an appraisal on the subject property, and this is a cost that paid prior to your closing.
Once we receive the loan application and supporting documentation back from you, we will then submit your loan. We package your information for submission to a lender, and that part of the process can take between one to five days to complete. We review the credit reports and verify the your debts and payment histories as the Verification of Deposits (VODs) and Verification of Employment (VOEs). If there are unacceptable late payments, collections for judgment, etc., a written explanation is required from the borrower. We also review the appraisal and survey and check for property issues that may require further discernment. The processor’s job is to put together an entire package that may be underwritten by the lender.
Your loan application and support documentation has been structured to present you to the lender in the best possible light. We submit your information to the lender for the initial approval process. The lender’s underwriter will determine if your loan meets Fannie Mae / Freddie Mac, FHA, USDA or VA guidelines and the lender’s in-house guidelines for the type of loan you are seeking. This process typically takes two to four days to complete at which time we are given their findings. The underwriter is responsible for determining whether the combined package passed over by the processor is deemed an acceptable loan. If more information is needed, the loan is put into “suspense” and the borrower is contacted to supply more documentation. If your loan is approved, we will be given a list of conditions that must be addressed with additional documentation and explanations.
Your Multiline Loan Officer will be working with you to complete requirements that the lender request for them to approve you loan and provide a Clear-To-Close (CLC). These might include payment of homeowner’s insurance, completing repairs on the subject property, providing tax returns, pay stubs or other documentation, and signing additional lender required documents or forms. Please understand that the recent changes in the Mortgage Market have forced all lenders to be very strict and restrictive regarding their lending policies. If this isn’t your first home loan then you might be surprised by the amount of documentation that you will be required to provide. It’s not you, it’s a sign of the times.
You are almost done. The pre-closing stage of the process is typified by the race to complete the lender’s requirements before the expiration of your contract or the scheduled date of closing. Once the lender’s requirements have been satisfied, we will receive a Clear-To-Close (CTC) for your loan. With that we will receive the HUD-1 statement that details the amount of money that you are required to bring to closing on a purchase. For refinances, the HUD-1 could detail the amount of money that you are either required to bring or the amount that you will receive from the bank. The HUD-1 statement details all closing costs, the loan’s interest rate, payment amount, and any disbursements.
Congratulations, you are about to cross the finish line! If you are purchasing a home, you will need to have a cashier’s check, draft or money wire for the amount of money that was detailed on the HUD-1 that you received prior to closing. Typically the Seller, Buyer, Listing Agent and Selling Agent will attend the closing. At the closing, our lender “funds” the loan, with a wire transfer to the closing attorney that is paid to the selling party in exchange for the title to the property. This is the point at which you complete the loan process and actually buy your house. Closing typically takes 45 to 60 minutes to complete depending upon the type of transaction. If you wish to read the closing documents in detail, then we strongly suggest that you request a copy of the closing documents before the closing date. The closing attorney will be happy to provide you an initial package for you to review. Please keep in mind that you will be signing standardized template documents that you are required to sign in order to complete the loan process. The loan documents should definitely be reviewed, but as a courtesy to everyone at the table, we recommend that borrowers be prepared.
If you are refinancing your loan the closing will be slightly different. The only people that should be attending will be yourself, your spouse and the closing attorney. Keep in mind that you will have a three day right of rescission on this loan, and the loan will not be considered final and closed until the passage of 72 hours of time. The closing attorney will provide you with the process and requirements for rescission.