The Loan Process

The Loan Application: 
This is the first step, you will need to have all pertinent information ready before you start.  You will be asked to provide your current address and current job history for 2 years, your current rate of pay, your year to date earnings, your social security number for all parties applying for the loan, your checking and other asset accounts with balances, your liabilities with balance and monthly payment information.

We are governed by the Texas Savings and Loan Department.  By law we are required to provide you with a good faith estimate and a truth in lending disclosure within 3 days of your loan application. Our policy is to provide you with these documents within 24 hours. Should you ever have a problem or a complaint with any mortgage broker or loan officer in the state of Texas, we strongly urge you to contact them and file a complaint. (Their website can be found by clicking here)

Prequalification: 
We take the information in your loan application and obtain a prequalification for your loan based on the information you provided in your loan application and your credit report. This information will determine how much you are approved to borrow and what interest rate you can qualify for.

Gathering Supporting Documentation: 
Once we have pre-approved your loan based on the information you have provided, you will be asked to provide supporting documentation to validate the information in your loan application.  We will then provide your real estate agent with a prequalification letter to help them better negotiate a contract for you.  This gives you greater buying power.

Locking Your Loan: 
You may lock your loan interest rate the day we receive your loan application, disclosures and supporting documentation in our office (overnight fees paid by us) or as far out as 45 days from closing your loan, and as close as 1 to 2 weeks before you close. 

Clearing Conditions: 
This is a very important step.  Remember that your loan has several eyes on it.  Your loan will go from us to an underwriter who has the power to provide a final loan approval, without this step you do not have a loan.  At this point we will have ordered your appraisal, title work, proof of homeowner's insurance and submitted your loan to the underwriter.  We will call you immediately upon conditional approval from the underwriter to obtain any additional documentation the underwriter has asked for - requests of this nature are purely down to the underwriters discretion, if they ask for something you MUST provide it, this is a non-negotiable request.  It is vital to get your information to us as quickly as possible, delays in getting documentation will only delay your loan closing.

Final Loan Approval: 
You are now ready to close.  You have a locked interest rate at this point and have cleared any conditions the underwriter has requested.

Getting Docs Out:
 Your loan documents will be signed at the title company.  Your lender will send your documents to the title company within 24 hours receipt of all documentation requested.  Your title company will send you a final settlement statement which shows you what your final funds to close the transaction are the day before your closing or the morning of your closing. 

Closing your loan: 
Your closing day, time and title company is generally negotiated through your real estate agent.  If you are closing a refinance transaction you have the power to pick your own title company.  If you do not have a title company we will be happy to recommend one for you (This is a very important step and sometimes not taken as seriously as it should be by borrowers. A slow Title company can easily hold up a loan closing if their staff does not follow procedures in a timely manner. Insist to your Realtor that they use a reputable Title company - you have the power to insist on this!) Once you have signed your loan documents the title company will send a request for funding to the lender. 

Funding your loan: 
Purchase loans generally fund the same day unless closed late in the day, in which case your loan will fund the following day so that the title company can receive the wired funds in their office from the lender.  Refinance loans fund 3 days after you close your loan as per Texas laws (right of rescission). 

Congratulations, you have completed your home loan and can start dealing with those movers (or calling any of your friends who own trucks and trailers).