Buying, building or refinancing a home is one of the most important investments you will ever make.  Real estate terminology, however, can be very confusing and frustrating.  We strive to make the mortgage application process go smoothly.  Our goal, with your help and patience, is quick and efficient loan approval!  A great deal of paperwork can be involved and every application is different.  Many loans are streamlined with less paperwork and a faster turnaround.  We hope this information is helpful to you. 

AFTER THE APPLICATION:  If additional information is requested of you at the time of the application, please contact your loan processor with the information within 24 hours.  Certain items cannot be ordered without complete information.

TRUTH-IN-LENDING:  Soon after your application, you will receive a Truth-In-Lending statement.  Don’t panic!  The APR (annual percentage rate) is not your interest rate.  The APR is the net yield to the lender because it includes your interest, discount fees and other credit costs that you pay up front (Prepaid Finance Charges).  Your mortgage note at closing will reflect the actual interest rate that you will pay.

THE PROCESSING:  After your processor is in receipt of all necessary verifications from employers, banks, landlords, mortgage companies and the credit reporting agencies certain questions may arise.  This is where we need your help!  Any questions regarding the file must be addressed in writing or clear documentation provided.  BE ASSURED, WE NEVER ASK FOR ANYTHING THAT IS NOT NECESSARY TO APPROVE YOUR LOAN!  Normal processing time is 2 to 3 weeks.  You will be kept apprised of the status of your file during the processing.

THE APPRAISAL:  The property appraisal is strictly to determine market value – not to warrant the condition of the property.  However, any deficiencies that will affect marketability will require repair prior to closing.  We expect appraisals to be returned to our office within 5 to 7 days (up to 10 days on FHA and VA appraisals) from the date it was ordered.  Any delay is usually caused by limited comparable properties and may require additional time.  If this occurs, you will be notified as soon as we are.

UNDERWRITING:  Once we complete the initial processing of your application, the file is submitted to our underwriter.  The underwriting time is generally 2 to 3 business days.  Since mortgage loan processing is an art, and not a science, the underwriter may request additional information.  DO NOT BE ALARMED!  THIS IS NOT UNUSUAL!  This is the last hurdle before final loan approval.

THE CLOSING:  After your loan is fully approved, the closing agent will contact you regarding the final settlement amount you will need, if any, to close on your home.  Should any questions arise, the Closing Department Personnel are very knowledgeable and fully capable of handling any questions.

We hope this information has given you some insight into the loan-approval process.  Remember, contact “Your Home Sweet Loans Specialist” with any questions that you may have.  We want to make buying, building or refinancing your home as simple and easy as possible.  We hope this information proves useful and helpful to you.