| Steps To Get A Loan |
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Here are the 8 steps it usually takes to approve and fund a loan:
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You |
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Lender |
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You Find a Lender and submit your pre-qualification |
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Your information is reviewed and you are contacted about your pre-qualfication. Depending on the loan type, you can lock your rate at this time. Then, your sent a loan application to sign. |
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You return your signed application and required supporting documents. |
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An appraisal is ordered for refinance and purchase loans now. |
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If you haven't already done so, you can request to lock a rate anytime after your documents are received. |
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The application and supporting documents are reviewed then assembled into a "loan package," then sent to an underwriter for approval. |
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Three possible outcomes of lender review: |
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Loan approved Go to step 6. |
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Loan approved with conditions
You are helped to meet the conditions and then resubmit. |
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Loan denied
Your loan package is sent to another lender and/or discuss other options. |
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Processing coordinates the timing of your closing with you and your settlement agent. |
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You sign your final loan documents on (or before) the closing date. |
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The lender wires your loan amount to your settlement agent. |
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.Qualify Now! |
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1 day +
This step can take 1 day or longer, depending on you. You'll need to gather the required documents, such as your pay stub, W-2 and bank statements, make copies and then send the originals with your signed application in the prepaid envelope that you are provided. The sooner you get everything in, the sooner your loan can be closed.
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Step #4
2 - 4 days
During this time, your title insurance is ordered and confirmed that you meet the lender's guidelines for the mortgage you want. If you don't qualify, your helped to find a similar mortgage that fits your needs. Lenders may also request additional supporting documents, such as 401k statements. The quicker you collect and send in these documents, the less time needed to assemble your loan package.
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Step #5
2 days to several weeks
The total time to complete this step depends on the lender, and on you. Normally, the lender takes from 3 to 7 business days to review your package and make a decision on your loan. If your loan is approved with conditions, it may take some time to meet all the lender's requirements.
The sooner you provide the required documents, the sooner the lender can clear any conditions for the loan's approval. The lender then gives their final decision within 2 to 3 days.
Standard lender conditions include:
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- Clear title (ownership) to the property
A title insurance company will conduct a title search to make sure that the seller actually owns the property that you're about to buy. Also, the seller must pay off any claim or lien placed on the property by a creditor.
- A signed loan application (1003) reflecting the final terms of the loan
- An appraisal that supports your property's value
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