Loan Process
Our team aims to change the perception that getting a home loan is painful, frustrating and difficult. We know that you’re a family, not a file, and will treat you with the care you deserve. We take your mortgage process seriously.
We believe that you deserve access to the best home loan in Texas. We’ll work hard to give you options that fit your unique situation, and your exact budget.
Through our unique, streamlined mortgage process, we can take the headache and guesswork out of getting the financing you need. We’ll be with you every step of the way – from collecting the first pieces of data to signing the last piece of closing paperwork.
Below are the steps in the home loan process:
Pre- Qualification*
- Pre-qualification starts the loan process with a application. A review of the borrower’s credit, income, and debts to determination how much the borrower can pay for a house.
- In attempting to prequalify homebuyers for the type and amount of mortgage they want, mortgage companies 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 is verified by your current employment and total income. Generally speaking, mortgage companies prefer for you to have been employed at the same place for at least two years, or at least be in the same line of work.
- The borrower’s willingness to repay is determined by examining how the property will be used. For instance, will you be living there or just renting it out? Willingness is also closely related to how you have fulfilled previous financial commitments, thus the emphasis on the Credit Report and/or your rental payment history.
- It is important to remember that there are no rules carved in stone. Each applicant is handled on a case-by-case basis. So even if you come up a little short in one area, your stronger point could make up for the weak one. Mortgage companies could not stay in business if they did not generate loan business, so it is in everyone’s best interest to see that you qualify.
- Many times no documentation is collected at this stage. (The exception is if you have any self-employment income. Tax returns will be requested to accurate calculate income.) It is important that the borrower reports details as accurately as possible on the application. Later in the process documents will be gathered to verify what was entered into the application to obtain the prequalification.
- Home Search (Purchases)
- After pre-qualification is made the lender will provide a letter of pre-qualification. This letter will be used to submit with any offer you make on a home. Sellers take offers from pre-qualified buyers much more serious than offers without such a letter.
- Move Forward with the Loan for Approval
- At this point a subject property would have been identified. The lender will provide loan disclosures to start the loan process for a purchase or refinance of a home. You will also have a list of documents the lender needs from you to validate the details you entered on the application during the pre-qualification process.
- This link will enable you to print off a list of the most common documents requested. Not everyone’s situation is the same so it is possible your list may be different: Common Documents Checklist
- At this point a subject property would have been identified. The lender will provide loan disclosures to start the loan process for a purchase or refinance of a home. You will also have a list of documents the lender needs from you to validate the details you entered on the application during the pre-qualification process.
- Loan Submitted to the Processing Department
- The Processor will review the application and your supplied documentation to make sure it paints a accurate picture of your financial situation.
- For refinances, you will receive a call to schedule your appraisal appointment. Your timeliness is important, as the appraisal completion date could impact your closing date.
- The processor will order and gather third party documentation such as the appraisal, title work, employment verification, flood cert, etc.
- You may receive a phone call during the process requesting additional information or clarification if the processor feels it is needed prior to submitting your file to a Underwriter.
- Loan Submitted to the Underwriting Department
- The Underwriter will review the entire file and render a credit decision.
- Most loan files will be “conditionally” approved on the first Underwriter review. Being conditionally approved means the underwriter is confident you will be fully approved but needs additional information to issue a full approval. Conditional approval happens on the majority of files and is the norm.
- Those conditions may be items needed from you or third party such as the appraisal or employment verification. The Underwriter can’t issue the final approval until all items are in.
- Clearing Conditions
- It is very important to be prompt in providing any additional requested information and/or documentation. Once all conditions are cleared the loan will be submitted back to Underwriting for final loan approval.
- Once final approval has been issue the loan is ready for closing and will be sent to the closing department.
- Closing Department
- The Closing Department will work directly with the title office to approve a final Closing Disclosure (CD). The CD document will be provided to you prior to closing. The current loan regulations require the CD be acknowledge/received by you 4 days prior to your closing date. There is no option to waive this waiting period.
- Closing
- Obtain a cashier’s check or wire transfer for any funds required at closing.
- Each borrower will need to bring identification
- Review and sign loan documents with your closing agent.
Congratulations!
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