The Loan Process
1. The Loan Application
The first step in securing a home loan is to fill out a loan application. Depending on what works best for you, you can either complete the application online or meet face-to-face with one of our loan officers. Once the application is completed, the loan officer will discuss your overall financial goals and then provide you with loan program options. Your loan program options are determined by many variables including home affordability, income, credit and assets.
2. Gather Documentation
The loan officer’s goal is to clearly document your financial qualifications for the loan which you have applied. In order to achieve this, the loan officer will ask you to provide some documentation that supports your income and assets such as:
- Pay stubs
- Tax returns
- Bank statements
- Other documentation as needed
Once the documentation has been gathered, we will then verify your employment history and assets. We will also obtain your credit report, order the preliminary title report from the title company and order your property appraisal. Once this information is returned to us, we will submit the file to the underwriter for approval.
The Underwriter is responsible for ensuring that your loan file meets the qualifying guidelines. During their review, it is not uncommon for the underwriter to ask for additional documentation and/or clarification on different areas of the file. These are called “conditions”.
5. Loan Approval
Your loan may be approved as submitted, approved with conditions, or a counteroffer may be made for your consideration. If there are conditions to the loan approval, your loan officer will work with you to satisfy these conditions. Examples of conditions may include explanation letters, copies of financial documents, divorce papers, or any number of items that will clarify your qualifications for the loan.
6. Signing Loan Documents
After the loan conditions are met (if any), the necessary loan documents are prepared for closing. The lender will prepare the necessary documents to be signed by you. Your escrow officer or attorney will arrange for an appointment with you when the loan papers are ready to be signed.
We work alongside the closing attorney to assemble the final paperwork and confirm the total funds needed for the closing day. Everything we do leading up to this point ensures that the closing table is a smooth and exciting experience. Now, enjoy the moment as you receive the keys to your new home.
When shopping for a home, you want to represent yourself and your offer in the most favorable position as possible. Not only are sellers interested in accepting offers at list price, many sellers also
want to be sure that you are qualified and your home loan financing has been secured.
Most lenders will simply run your credit and gather some information so that they can provide you with a pre-qualification letter. This pre-qualification letter does NOT secure your financing – it’s a preliminary approval subject to the verification of your assets and credit. A pre-qualification letter will not give you the leverage you need to get your offer accepted.
At Foundation Mortgage, we “by-pass” the pre-qualification step and process your loan application. By processing your loan application up-front, we can get your loan pre-approved and secure your financing.
A pre-approval includes:
- GATHERING ALL OF THE DOCUMENTS NEEDED
- EVALUATING YOUR CREDIT
- VERIFYING YOUR EMPLOYMENT AND ASSETS
- SUBMITTING TO UNDERWRITING
- IDENTIFYING AND ADDRESSING POTENTIAL CHALLENGES
- ISSUING A FORMAL INTENT TO LOAN THE FUNDS