There are several steps in the loan process. Here is a breakdown of each step from pre-qualification to closing and a description of what happens during the process.
Pre-qualification
The first step in getting pre-qualified is completing the loan application and gathering the necessary documentation. The loan originator will review the documentation, pull your credit report and run your loan through automated underwriting to determine which loan program you qualify for.
Loan Application
Once the pre-qualification is complete and a property has been identified, the loan application can begin. The loan originator will prepare the loan documents specific to the loan program and property that you are financing. You will have the opportunity to ‘lock-in’ you interest rate during the loan process.
Underwriting
The loan processor will submit your application and documentation to an underwriter for review. The underwriter will condition for any items or supporting documentation needed to make a final decision on your loan. Once all items have been received and reviewed by the underwriter, a final decision will be issued.
Quality Control Audit
During the quality control loan audit, everything is verified to ensure all loan requirements are met and all information is accurate. Credit is re-pulled, employment and banks are re-verified, and an IRS and Social Security audit is performed to make sure there have not been any changes that would effect the loan approval. Once the final audit is complete, the loan will be clear to close.