To follow is a general expectation for the loan process, from the time of requesting the loan (or locking in on a rate) through closing. When you first start out, it can seem like a daunting experience as you gather all the documentation and paperwork, but if your loan agent provides you with an expectation of next steps and keeps you updated every step of the way, it should go fairly smoothly. Here’s how the process typically works:
- Submit loan application and all requested documentation to your lender/originator so that the loan can be submitted to the “set-up” department, then underwriting department. Concurrently (or soon after), appraisal report gets ordered.
- You will receive a Loan Estimate (closing cost disclosure) that you must consent to, and indicate your Intent to Proceed with the loan. Your loan will then move to the Underwriting department.
- Receive the Conditional Loan Approval. Depending on the scope of the conditions, it may take a day or two to gather them. Once gathered, all conditions are submitted to the underwriter for final approval.
- Receive the Clear to Close Loan Approval, and Loan Docs can be ordered.
- Closing Disclosure (CD) gets issued to you. Once you consent to the CD, you must wait 3 days before signing.
- Loan Docs get to the title company, and are ready for you to sign. I recommend setting aside an hour for the signing appointment.
- After signing, the escrow officer returns the signed docs (called the “funding package”) back to the lender for them to review.
- Any remaining conditions are cleared and your loan funds!