Identify the home you want to buy. At this step, you’ve already submitted the documentation requested by your loan officer. Once you have an accepted offer, the lender then orders a property appraisal report, a preliminary title report and other third party services needed in order to document and fully approve your loan. Once the requested documentation has arrived at the lender’s office, the loan then moves to underwriting. The underwriter reviews the application and supporting documentation to make sure the loan application is in full compliance and is in line with lending guidelines. Once the underwriter signs off on the loan, your loan papers are electronically delivered to the escrow agent and your closing will be scheduled. At your closing, the escrow agent will oversee your settlement and follow the instructions sent by the lender. After your papers have been signed the escrow agent will then send the signed documents to the lender for a final review. Your loan will then fund the same day when you signed.
When a lender receives a mortgage loan application, it’s the beginning of a process that has several steps. For those who have yet to buy their first home, the number of steps involved might seem a bit overwhelming at first but in practice these steps are taken one at a time and aren’t completed all at once. In fact, getting a home loan approved involves completing multiple steps along the way before the loan papers can make it to the escrow agent for a closing. We’ll lay out the various steps involved and what you can expect as you get from the application stage to final approval.