How Does The Loan Process Work

How does the loan process work?

Step One: Gather your Documents and Apply

When you apply for a loan you will be asked to provide documents about your finances and the home you wish to buy or refinance. Below are lists of commonly requested information you should expect to provide when you apply for your loan. You may be asked for additional documentation, depending on your situation.

Tip: Submitting a complete application, is one of the best ways to insure a faster loan process

Pay stubs—Past 30 days’ pay stubs with year to date information for all jobs and for each borrower

  •   W-2s—Past two years’ tax forms
  • Asset statements—Most recent two months’ statements for any assets listed on the application, such as savings/checking/retirement accounts, 401k, etc.
  •  Copy of driver’s license or government ID
  •  Proof of homeowner’s insurance—Agent name, phone number and proof of insurance

Personal information:

  •  Social Security number
  •  Date of Birth
  •   Email Address
  •   Phone Number
  •  Current Address
  •   Previous Address if you’ve been in your current residence for less than two years

Employment information:

  • Employer’s name and address
  • Previous employer’s name and address if you’ve been at your current job less than two years





Other income & expenses information:

  •   Gross income amount, including secondary, if applicable
  •  Asset information, including the value of your banking, investment retirement and other accounts
  •  Current expenses, such as utilities, credit card and loan payments, child support and other obligations

Step Two: Initial Review

During the initial review, you will be assigned a Loan processor who will work on your loan all the way through to closing. Your Loan Processor will organize the paperwork and help make sure all the documentation is complete to prepare your application for underwriting review.

Note: There is usually a waiting period before a completed application is reviewed by the underwriting department. Wait times very between 2-15 days and depend on factors such program type and lender loan volume at time of submission.

Step 3: Underwriting

After we have gathered all your documentation, underwriters review your loan package to make sure it fits the guidelines required for your loan program. They evaluate the loan application and make the credit decision. In some cases they need more information to make their decision. We will contact you and help you with the additional materials if requested

Tip: When asked for additional information, get it in as quickly as possible. Each time new information is ready for the underwriting department to review, it’s put into a document review line. Once in line, it takes anywhere from 2-5 days for the underwriting department to review the new information.

Step 4: Approval decision

Once your loan is approved, a closing date can be set. Prior to the closing, the HUD-1, your final settlement statement, is delivered to you for your review. The HUD-1 outlines all the costs of your loan so be sure to look it over and contact your Loan Specialist if you have any questions.




Step 5: Close Your Loan


Settlement costs and payments

Typically at closing, you will review and settle any credits and costs such as the closing costs, earnest money deposits, taxes, escrow and insurance if applicable.

Review and sign your papers

At the closing, you spend the majority of your time reviewing the closing documents with the details and terms of your loan – and signing your name. Ask your Loan Specialist or Closing Agent if you have any questions about what you are signing to ensure you are comfortable with and understand the aspects of the transaction.

  •   A few of the documents you review at closing:
  •   HUD-1 Settlement Statement
  •   Updated Truth-In-Lending Disclosure (TIL)
  •  Mortgage/Deed of Trust
  •  Promissory Note


Refinancing? You may be able to close from your home or office. Ask your Loan Specialist if electronic signing is available in your area.

You’re done!

You’ve closed your loan. If you’re buying, it’s time to move into your new home. Refinancing? Welcome home (again).


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