THE LOAN PROCESS BROKEN DOWN
First off let us explain that every loan process is different depending on the loan and the broker. What you are going to read below is the process that Locke Your Loan has adopted and been successful in using. Basically it is our secret sauce that makes our client experience taste so good, enjoy.
Pre Qualification and House Hunting
Mortgage Pre Qualification- We review your financial situation and determine a lending amount
1. Completion of the Loan Application -
Its a very simple questionnaire that ensures we have the correct spelling of your name, DOB, & SSN. As well as your employment information.
2. Determine what Mortgage option is best for you -
Do you need down payment assistance? Are you rate sensitive? Do we need to shop for the best PMI? Defining your needs is the most important first step. We want to make sure we understand what is important to you.
3. Loan programs -
FHA, VA, Conventional, Home-ready, Home-possible, 203k, FNMA Reno, DPA, Asset Utilization, Bank Statement only....the list goes on. No matter your financial needs, we will have a program for you.
4. Reviewing your documentation -
Review your credit/ FICO score / # of accounts / Lates or delinquencies or credit inquiries / Employment History (Current and Previous) and 2 years of work history / Type of employment / Income & Debt / salaried or commissioned / Full time or part-time / All Taxes Miscellaneous Deductions / Student loans / Alimony / Child Support / Assets - Funds needed to close / Bank Statements and any Asset Account Statements
It takes us only a few short hours to finish your Pre Qualification AND THEN you are cleared to go House Hunting!
1. House Hunt until you find the ONE
2. Text the address so we can look up the tax rate for you. We want you to understand the payment!
3. Write the Offer
4. Offer Accepted
5. Open Escrow
6. THE LOAN PROCESS BEGINS
The Loan Process
Step 1 -
Purchase contract: Congratulations on getting into contract! THIS IS THE FIRST STEP!! Your loan is about to jump-start, BUT first, we need a few items from the Escrow Company so HANG Tight a few more days :).
Step 2 -
Disclosures: Once we receive the documents we need from Escrow we will send you Electronic Disclosures via your email on file. These disclosures show fees higher than what they actually are. As the process continues we will narrow down the Cost of the Loan. Signing these disclosures does not hold you to the loan, in fact, nothing you sign holds you to the terms of the loan UNTIL you sign loan documents with a Notary Public close to the end of escrow. These disclosures ONLY start the underwriting process.
Step 3 -
Appraisal Order: As soon as the E-Disclosures are signed, then we will call you to get your credit card information to order the appraisal. The appraisal is done by a 3rd party through an Appraisal Management Company, with a typical cost of $500. Once the appraisal is ordered it typically takes 10 days to get it back to us.
Step 4 -
More Documentation Needed: When you sign the first set of E-Disclosures we will then send your entire loan package to an underwriter. She/he then will double-check that you meet all of the government-mandated guidelines. They will come back to us with a Conditional Approval. This means the underwriter will ask for more documentation from us and from you. My team member, Aimee, will reach out to you as soon as we know what the underwriter needs.
Step 5 -
Signing Loan Documents: We are almost done! Now is the time that all loan terms are final, all fees and down payment information is final, AND our loan closing is in sight. This is the time that you will sit down with a Notary and sign your Deed of Trust!
Step 6 -
Wiring in your Money: The rest of the money now needs to be wired into escrow per the instructions in your loan docs.
Step 7 -
Funding: Congratulations on your new home purchase. Your agent will contact you to give you the keys very soon!
Step 8 -
Post Closing with Locke Your Loan. This next step is us taking care of you even after we are done with your transaction.
We are not transactional here at Locke Your Loan. We would like you to be a client for life. That is why we go above and beyond post-closing. Buying a home is the biggest investment of your life. Let us help you maintain it!
1. Monthly Email / Client Digest
This email will contain a customized snapshot of your home such as Value, Rates, and even Airbnb value.
2. FREE Inspection -
We will send an inspector out to your home and they will conduct a 300 point inspection. Your home is not considered complete until every item on the list has been inspected, checked off and certified complete for the purpose of starting a calendar. Once the calendar is completed you will get emails itemizing what needs to be maintained. This detailed process, combined with your Locke Your Loan experience, ensures that our standards have met yours, resulting in your happiness.
3. 30 - 60 - 90 Day Check-In -
30 Day Call We check in on the move-in process. We also want to call to ensure you received your first mortgage payment coupon. - 60 Day Call We have a really awesome Client Digest that we send out monthly (read more above). It is specific to your neighborhood trends, home value, and how your growing equity can be used. - 90 Day Call We will review your 300 point maintenance inspection. This our my favorite call. - Annual Review Call We will review where the economy is in relation to your interest rate and the value of your home. We will go over the anticipated appreciation for your neighborhood as well. Lastly, we will want to know what plans you have for your home this next year and how we can help. Example - "Lara we want to change our kitchen floors" - "Lara we need an interior designer". We can definitely send our tried and true contractors your way for you to interview!
4. Semi-Annual Client Event
As a Thank You for being our client, Locke Your Loan hosts a Semi-Annual informal event, in a non-traditional environment, to show our appreciation for choosing to work with us.