The final installment of these frequently asked questions will walk you through the mortgage loan process and help serve as a guide in your decision-making process.
What is Loan Processing?
This step requires gathering documentation about you and the property to pass on to the Underwriter. You can expect processing to include:
- Verifying your assets, income, and employment
- Ordering a property appraisal, and title search
It’s important to note the appraisal confirms to your lender that the home is worth the amount of the loan.
What is a Loan Estimate?
You’ll receive a Loan Estimate that contains a full breakdown of the terms, features and costs associated with the home loan you’re being offered, including:
- Loan amount
- Interest rate
- Monthly payment calculation
- Closing costs
- Property taxes
How does Underwriting impact my loan application?
This is a crucial step because the Underwriter is the key decision-maker who confirms the accuracy and validity of your income, assets, and credit profile. The Underwriter will cross check to see if the Borrower and property match the eligibility requirements of the loan.
Is Conditional Approval required to get a loan?
Any additional items the Underwriter may need will be listed on the Conditional Approval, which details all of the conditions required in order for your approval to be complete. Your Loan Officer will contact you to go over the conditions required. All necessary items must be available to prepare for the initial Closing Disclosure. Once the CD is ready, it must be signed at least three business days prior to your closing date.
What does it mean when the Loan is Clear to Close?
Once the Underwriter has cleared all necessary items, a clear to close will be issued. You will be notified that your loan is “Clear to Close” and the closing department will start preparing closing documents.
What is Closing?
There are a lot of moving parts when scheduling the closing. You will be notified once your closing date is set.
Do I get the keys once the Loan has been Funded?
In this final step, all documentation is now complete and the funds for your loan have been disbursed. The loan process is now finished, and you’ll get the keys to your newly purchased home.
Information is subject to change without notice. This is not a commitment to lend and all loans are subject to credit approval; certain restrictions may apply. NMLS ID #13589 (www.nmlsconsumeraccess.org). See phmc.com for additional licensing information.