Processing Your Home Loan

To "process" a loan is to make sure that all of the required documentation has been obtained and checked to ensure the conditions stated in the preliminary approval are met.

Step One -- Verifications
Verifications are sent to your bank, your employer and to your landlord, if you're renting, to verify the information you provided on the application.

Cost Estimates
Within three business days you will be sent a complete set of mortgage disclosure documents by your lender. These documents will include a Good Faith Estimate of settlement charges, a Federal Truth-in-Lending Disclosure, a Mortgage Program Disclosure and other information and documents pertinent to your transaction. If you have applied for an adjustable rate mortgage (ARM) you will also receive a copy of the Consumer Handbook on Adjustable Rate Mortgages (CHARM). You should carefully review these documents for accuracy; contact your lender directly to answer any questions.

Appraisal
Upon receipt of your file, the lender will order an appraisal on the subject property. Within the first week after you apply for a mortgage two other events should occur. First, an appraiser hired by your lender should have made an appointment with you or your real estate agent to perform a physical inspection of the property. Second, you should engage the services of a licensed settlement agent to perform the settlement and escrow process. If you have any difficulty with either of these two items, call your lender for advice and assistance.

Once the appraisal, credit report and completed disclosure and documentation package is received, your lender will prepare your loan for submission for final approval.