Loan Timeline and Steps to Success
The first step in the mortgage loan process is to become conditionally approved. Your loan application will start the journey of buying your dream home.
Step 1 Pre-Qualification
The lender pre-qualifies the borrower for a mortgage prior to the identification of a specific property.
Step 2 Rate Lock
The lender issues a written agreement guaranteeing the borrower a specified interest rate, provided the loan closes within a set period of time. To lock a rate the applicant must have a ratified contract and an established settlement date.
Step 3 Loan Disclosures
This lender offers the official estimate and loan disclosures. The applicant must receive these documents within three days of the loan application. The documents need to be signed and returned to the lender as soon as possible.
Step 4 Appraisal
An appraisal is a written analysis of the estimated value of a property prepared by a qualified appraiser. This process is performed to make sure that the property is of fair market value and supports the agreed upon purchase price.
Step 5 Processing & Underwriting
The processor prepares the file for underwriting. The Underwriter completes a review of documents for final approval. It is common for the Underwriter to request additional explanations or documentation during the process. The processor relays these conditions to the borrower.
Step 6 Initial Closing Disclosure (ICD)
The Initial Closing Disclosure (ICD) must be provided and acknowledged by the borrower no less than three (3) business days prior to settlement. Per compliance, the loan will not be able to close until the 3rd business day after acknowledgement.
Step 7 Final Closing Disclosure (CD)
Settlement is a meeting conducted by the title company in which the sale of a property is finalized with the buyer signing the mortgage documents and the seller transferring ownership. Prior to settlement, we will send you the final CD which will have the final figure for cash required for closing.