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The Loan Process
Step One
I. Pre-Qualification
II. Application
III. Pre-Approval
IV. Loan Lock
V. Documentation Collection
Are you purchasing or refinancing?
Purchase: You have decided you would like to make a new home purchase. In this case you will need to consider with your Frensdorff Group loan consultant the best course of action based on your purchase time line. For example are you looking to buy six months to a year from now or are you looking to buy more in the immediate future?
Pre-qualification - Speak with a qualified Frensdorff Group loan consultant to review your mortgage finance goals. You will discuss a number of items which will help us provide you with the knowledge necessary to determine the most effective financing path. Loan programs and options have significantly changed and continue to evolve. It is in each client’s best interest to update themselves on current loan options and financial strategies that can make a major difference in the leverage that their financing creates. The prequalification process is a discussion that will allow you to determine what you can afford and what the most optimal strategy will be for you. A loan application and credit report are not necessary for a prequalification.
Pre-approval/Application
The pre-approval process will encompass many of the same concepts and components of the prequalification process. The major difference for a pre-approval is that you will have a solid commitment from The Frensdorff Group that you will be able to obtain the desired financing necessary to make a new purchase. A fully completed loan application, credit report and financial documentation will be required for a pre-approval to be obtained. A pre-approval is the best place for a motivated buyer to begin. From this point a client can determine very closely exactly what there loan structure and payments will be for a given purchase price on a given set of terms. A client with a pre-approval is considered by sellers to be a serious and well qualified buyer. Buyers who are pre-approved will have greater leverage to negotiate purchase terms, and will more be more likely to be satisfied with their purchase transaction.
Refinance: You are looking to refinance the existing loan structure you have on a property that you own. In this case you will need to consider specific details as to the type of property you are interested in refinancing, its current and future usage as well as what your finance goal are. For example - Are you looking to obtain cash out to remodel? Buy another house? Or are you looking to simply lower your payments with a different loan program or lower rate than you currently have? During this step you will complete a loan application with your loan consultant and prepare to submit necessary documentation to obtain new financing.
Step Two
New Purchase or Refinance
I. Lock Loan
II. Generate and mail initial disclosures to client(s)
III. Open Escrow
IV. Order a Title Report
V. Order Appraisal
New Purchase will include all the above and the following
I. Property identified and a fully completed purchase contract completed
In step two you will have completed the application process whether you are buying or refinancing. Selection will have been made for the type of low that is best suited you’re your goals and a specific terms will be locked and put in writing. By now you likely will have submitted required documentation but may still have some outstanding items to obtain.
Intial disclosures will be generated and mail out to you. Initial disclosures are designed to make sure that the lender and client have agreed on the loan terms that have been set up. Specific terms of the transaction are outlined, with loan rate payments and a good faith estimate of loan costs will be included. Intial disclosures have become increasingly more important over the years as identity theft has increased. With this inceasing awareness has come an increased emphasis on initial disclosures being signed and returned by clients. Lenders are required to print and mail disclosures within three business days of a loan being locked.
Step Three
II. Appraisal Report Completed
III. Escrow Instructions completed
IV. Title report Completed
V. Client submission of documentation completed
VI. Final Underwriting submission
Step Four
I. Final loan approval obtained
II. Prior to loan final loan document conditions satisfied
III. Final Loan Documents drawn
IV. Signature for docs.
Step Five
I. Final Loan Documents Signed by client(s) with Notary Public
II. Prior to loan funding condition satisfied
III. Loan Funds
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