Pre-Qualification

Pre-qualification starts before the loan process actually begins, and is generally the first step after initial contact with the loan officer.

The lender gathers information about the borrower’s income, debts and other relevant information to help make a determination about how much the borrower qualifies for in order to purchase a home. Different loan programs may allow for different values, so it is important to obtain a pre-qualification for each type of loan program that is suitable.

Application

The application is the beginning of the loan process. The buyer, now referred to as the borrower, completes a mortgage application and supplies all of the required documentation for processing.

Various fees and down payments are discussed and the borrower will receive two documents: a Loan Estimate (LE) and a Closing Disclosure (CD) statement, which itemizes the rates and associated costs for the loan. Both of these documents will be sent to the borrower within three days.

Processing

Processing generally occurs between 5 and 20 days into the loan process.

The processor reviews the borrower’s credit reports and verifies his or her debts and payment histories as the VODs and VOEs are returned. Should there be any unacceptable late payments, collections for judgments, etc., a written explanation will be needed from the borrower. The processor also reviews the appraisal, survey and looks for property issues that may require further review.

Underwriting

Underwriting will generally occur between 21 and 30 days into the loan process, or sooner.

The underwriter is responsible for determining whether the combined loan package passed over by the processor meets all the required guidelines. At this time, if more information is needed, the loan is put into “suspense” and the borrower is contacted to supply additional documentation.

Pre-Closing

Pre-Closing occurs approximately between 25 and 30 days into the loan process, as long as no issues occurred in the previous steps.

During this time the title insurance is ordered, all required approval contingencies are met, and a closing time is scheduled for the loan.

Closing

Closing usually occurs between 25 and 45 days into the loan process (depending upon the designated length of your escrow).

At the closing, the lender “funds” the loan with a cashier’s check, draft or wire to the selling party in exchange for the title to the property. This is the point at which the borrower finishes the loan process and actually buys the house.

Purchase

Are you having trouble finding you dream home?

The purchase renovation home loan is best for the home buyer looking to purchase a property that needs a little work or a few upgrades, commonly referred to as a “fixer-upper.” Whether your dream property needs a new roof, a kitchen upgrade, or a complete renovation overhaul, the renovation loan provides qualified borrowers the financing they need to purchase the property and fund their future home’s improvement costs.

Refinance

Dreaming of new cabinets and a bigger bathroom?

The refinance renovation home loan is best for the homeowner(s) interested in major renovations or minor improvements on their existing home. Our refinance renovation loan is the perfect solution to turn your “now home” into your “forever home.”

Need a Renovation Loan?

You’ve Come to The Right Place

Chris can help you decide the best possible loan to renovate your new home purchase or existing home remodeling project. Regardless of which path you pursue call Chris today to ensure the best possible experience.

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