An overview of the loan process - Good Faith Financial, LLC

An overview of the loan process

Make no mistake, there's a lot involved in getting a mortgage loan. It is easy to become stressed and overwhelmed as the process unfolds. After all, you are the one being scrutinized by multiple financial institutions… all at the same time. You wouldn't be here on our website if you could fill out a one-page application and get the best loan for you funded the same day. What we do is most of the heavy lifting for you, so you can concentrate on what's important -- preparing to move into your new home, saving money, or making plans for your home equity line of credit. It is our intention from the outset to find you a loan with the Lowest Interest Rate, Lowest Monthly Payment, and Lowest Closing Costs.

There are Six Steps involved in getting a loan. You'll see that we've made your part in them as easy as possible, and we do all the work! That's what we're here for.

Step One: Determine How Much You Can Afford To Borrow

This is mainly based on your current financial situation. This step is very important as it will help us determine exactly how much of a monthly payment can you afford, and the kind of terms and loan program you can expect to benefit from the most. Without a completed 1003 Loan Application we are unable to provide any tangible information beyond a description of the process itself. However, with your completed application we can help you understand your unique credit history, employment history, and income/debt ratios. Good Faith Financial intends the application process to be as informative to the borrower as possible. During the application process do not become embarrassed or overly confident as your financial situation is never as good or as bad as you might think. Instead understand that we have helped families in every financial situation possible and we will help you understand your own financial situation from a lenders perspective.

If You Would Like To Apply Now…We make it easy!

It couldn't be easier, and you can do it online, right here at our website. Or, if you prefer, we can take your application over the phone or in person. Our first step is to set up your secure account that has a unique username and password. This account can be accessed only by you, online, and at your convenience. Once the Account is created you should print out the Loan Application Checklist to help you organize and obtain everything you will need. Finally, you simply log into your account and fill in the online loan application using the information you gathered using the checklist.

Step Two: Processing The Loan

Processing occurs between days 5 and 20 of the loan. The "processor" reviews the credit reports and verifies the application information. As the days progress there are often areas of a borrower’s history that will require extra documentation. Understand that these requests are more common that not, this does not mean your loan is in trouble. The processor may request such items as payment histories, Verification of Employment, Verification of Deposits, rental agreements, or written explanations for late payments, collections for judgment, etc. The processor during this period will also order or review the home appraisal and site survey. The processor will check government and bank records for any issues with the property that may require further discernment. The processor's job is to put together an entire package that may be underwritten by the lender.

Step Three: Underwriting

Lender underwriting occurs between days 21 and 30, or sooner. The underwriter is responsible for determining whether the combined package passed over by the processor is deemed as an acceptable loan. The underwriter will often ask for more documentation or proof of records. If more information is needed, the loan is put into "suspense" until the borrower provides this information. This can be a stressful time, as underwriters work at their-own-pace, ask for documentation late in the week, and do not directly communicate with the borrowers themselves. These factors can cause the loan approval to be pushed back as far as a week. At this point in the process if things get pushed back it is important to understand that all contracts and agreements with the sellers, real estate agents, loan officers, insurance, escrow, etc. can be amended to accommodate the underwriting process. At this late in the process you as the borrower are the one with all the power, and should not be worried or bullied by other parties involved. Everyone’s fees and contracts are dependant on your loan, and if it were to fall through, don’t stress, as contracts are written to protect the buyer/borrower from such an unfortunate occasion. Remember no matter how good of a deal you believe you are getting on a house, you are still the one doing the seller a favor. It is your money that making this happen. Good Faith Financial is here to ensure everyone is aware of your importance.Once you've made an offer and it's been accepted, it's time to complete the loan application. It couldn't be easier, and you can do it online, right here at our website. When the time is right, we'll order an appraisal of your new home.

Step Four: Your Loan Is Funded

Your realty agent and the seller's will work together to designate an escrow/title company to handle the funding of your loan once it's approved. We'll coordinate with the escrow company to make sure all the papers your lender will need are in order, and you'll sign everything at the escrow/title company's office.Your realty agent and the seller's will work together to designate an escrow/title company to handle the funding of your loan once it's approved. We'll coordinate with the escrow company to make sure all the papers your lender will need are in order, and you'll sign everything at the escrow/title company's office.

Step Five: Pre-Closing

Pre-Closing occurs between days 25 and 30, or sooner. During this time the title insurance is ordered, all approval contingencies, if any, are met, and a closing time is scheduled for the loan.

Step Six: Closing

Closing usually occurs between days 25 and 45 of the loan (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.

You've answered a few questions, given us some detailed information, applied online, and next thing you know, you're moving in! We're in the business of mortgage loans -- so we do most of the work. Doesn't that make sense?