Overview Of The Loan Process
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Types
of Loans Home Purchase Basics
Private Mortgage Insurance Closing
Costs Overview Of The Loan Process |
| Once you select Riverside Financial Services to obtain your home loan, you'll be amazed at how quickly and simply the loan process moves. Before you know it, you'll have a mortgage that suits your lifestyle and saves you money. |
| Throughout the loan-application process, we provide you with regular updates. You can also e-mail us with questions or new information. And if you want assistance, a mortgage expert who can answer questions is just a phone call away. |
| Here's an overview of the loan-application process. |
| STEP ONE -- Determine how much you can borrow Mortgage Calculator |
| STEP TWO -- The Loan Officer |
| Your first contact will be with a mortgage consultant whose role is to analyze your income and assets, match your finances and homeownership goals with the appropriate loan product, and help you complete the paper work required for your loan application. Your mortgage specialist will also "supervise" your mortgage application as it proceeds through the approval process, and is available to answer any questions you may have. |
| STEP THREE -- The Mortgage Processor |
| Once you have completed your mortgage application and provided some or all of the necessary documentation to your loan officer, your file will then be submitted to the mortgage processor. The processor's goal is to get your loan approved quickly, and with minimum amount of difficulty. He or she will, therefore , review the documents in your file to determine your eligibility for mortgage approval. The processor may need to verify some of the information in your file, or may note a missing piece of documentation, or decide that obtaining certain amount of additional information will make loan approval more likely. During this process, the processor will undoubtedly call you and your co-borrower. If you provide a timely response to his or her requests, the process will go more quickly. You will also be informed if there is a problem with your application. |
| Credit
Report A report detailing an individual's credit history that is prepared by a credit bureau and used by a lender to determine a loan applicant's creditworthiness. Credit
Risk Score |
| STEP FOUR -- The Appraiser |
| If you have already found the home you wish to buy, we will order an appraisal on that home as soon as you apply for your mortgage. If you have applied for a pre-approval and have yet not found your house, your loan moves to step #5, and the appraisal will be ordered later. In either case, a professional appraiser will contact you or your real estate agent to set up a visit to the property. Based on the visit and an analysis of comparable properties in the area which have recently sold, the appraiser will determine the market value of the property. An appraisal report written by appraiser would have a simple floor plan and some photographs. The importance of appraisal is because it sets a "fair market value " of the property on which the loan amount often depends. Certain mortgage programs, such as FHA, require the appraiser to specify anything which must be done by the seller prior to closing to bring the property up to acceptable standards. |
| STEP FIVE -- The Underwriter |
| Once your mortgage is fully processed , the underwriting stage usually goes very quickly. If the underwriter agrees that you are a good candidate for a mortgage, he or she will prepare a commitment letter, which you as the borrower will be asked to sign. The commitment letter contains the terms and conditions of your mortgage which will need to be satisfied before you close on the property. If you are getting a pre-qualify loan commitment , the receipt of a satisfactory appraisal will be one of those conditions. |
| STEP SIX -- The Title Search |
| A title search will be ordered during the process from either the title attorney or title company of your choice, or by us. A title search is a review of public records and the preparation of a report detailing the property's history of ownership. When the search is complete, the attorney will provide a mortgage title insurance policy that protects the lender against losses due to a faulty title. You also have the option of purchasing your own coverage. Importance of this is because this document tells us who owns the property and what liens are against it. Your funding of loan depends a lot on the number of liens you might have on the property. |
| STEP SIX -- Verification |
| This is the most time consuming process and involves lot of people verifying the facts you put on your application. You could help in reducing the time of loan funding by cooperating and coordinating these inquiries with your loan officer. Verification are sent to your employer, your land lord , your bank and anything that determines the assets and liabilities you might have. It is in your interest to disclose any financial misfortune, if you had one in your past. |
| The mortgage closing
......Congratulations!
When all the conditions in your commitment letter have been met, and the title search is complete, a date will be set for the closing. You, your real estate agent , the seller and , if customary, your attorneys, will meet at the closing agent's office to complete the sales transactions, which will include the signing of many legal documents and the payment of various funds and fees. Your financial partner may help you prepare you for this important day. Feeling comfortable and informed will help make buying a home and securing your mortgage a smooth process.
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