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The Detailed Loan Process
1. Complete the loan application. We can do this over the phone and it takes about 20 minutes. There is no cost or obligation, but nothing can proceed until we complete this 1st step.
2. I then run credit, thus making sure your FICO scores meet our guidelines. This also completes the loan application as the "Liabilities" section is automatically completed. You incur no upfront cost for this but the actual cost is eventually charged at the Close of Escrow. It is typically about $36.
3. Our Compliance Department then sends out all the Disclosure Forms for you to print, sign, and return. This includes the Loan Application itself, and many other forms, including the GFE (Good Faith Estimate).
4. Once you "Consent" to receiving the Disclosures electronically, we are allowed to order the Appraisal the next day. You will be contacted for payment via credit card. The cost is typically $415.
5. You submit all required documentation, i.e. the following 6 items:
a. Pay stubs for all borrowers covering the last 30 days.
b. Bank Statements (all pages) for last 2 months for assets included in the loan application.
c. Last 2 years W2s for all borrowers.
d. Last 2 years Federal Tax Returns. (If applicable)
e. Copy of Driver’s License
f. Evidence of Homeowner's Insurance. (Declaration Page)
6. The loan file is now complete and can be uploaded to Freedom’s website for Automated Approval. (DU/LP Approval)
(Note: At this point, we may lock the loan - unless we are uncertain there is enough equity in the home - and thus we would wait to lock until after receiving the appraisal.)
7. Once the loan file is complete, it can be submitted to the Underwriter for Conditional Approval. This typically takes just two days.
8. We receive “Conditional Loan Approval”.
9. We resolve any Conditions. You may be asked to provide updated documentation, or to answer any questions that come up after the Underwriter review. This can all happen in one day - or more depending on what is needed.
10. Once all Conditions are "Cleared," we get the "Clear to Close," and can order "Docs." (The documents that are signed at the Title Company, or via a Mobile Notary).
11. The Sign Off occurs.
12. For a Refinance, after the mandatory 3 day wait (Right of Rescission), the Loan Funds.
13. The next day, the loan Records, signifying the Close of Escrow.
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