The next step in the home loan process (after loan setup) is Processing. During Processing, the Processor works with the Underwriter, the Closer, and the title company so they can close the loan.
Processing normally takes 2 to 3 business days. The time varies due to the complexity of the file and the completeness of paperwork. Afterwards, the file goes to underwriting for the initial underwriting approval. This is only once the Processor determines that enough documentation exists for an approval.
At the time of submission, the Underwriter emails you an updated Loan Summary Worksheet. This outlines updated monthly mortgage payments and also provides your closing costs.
Possible Action Required by You
The Processor reviews the supporting documents and third party items (such as the appraisal, homeowners insurance, etc.) to ensure they address the program guidelines. The Processor will reach out to you if they need additional documentation. Please be responsive with any request and call us if you have any questions or concerns.
New Primary Contact
Once a file goes to processing, the loan officer no longer has access it. Therefore, the Processor becomes the primary point of contact for the remainder of the process.
While the Processor is now the primary contact, the rest of the Mortgage Mark Team is still available to assist and answer questions. It’s almost too convenient: we’re literally three office doors down the hall.
Home loan approval includes two parts. The first part is the credit (i.e. you) and the second part is the collateral (i.e. the home). By now you have been credit approved, which means we’ve reviewed enough of your information to ensure you are “financeable”. What this does NOT mean is that you’re done with paperwork. Again, while you are credit approved, you are certainly NOT done with paperwork!
As mentioned, the other component of the full approval is the collateral, or the home. The appraisal acts like the lenders eyes. First, it provides a market value for the home. Additionally, it also provides information about the condition of the home and the surrounding area.
Initial underwriting approval follows Processing and typically takes 2 to 3 business days.
Home Loan Process: Processing & Credit Approval
- The Setup Team orders third party items (such as appraisal, title, insurance, etc.)
- Third Party Docs Pending – waiting time is variable
- Processor reviews file and possibly requests additional docs for credit approval
- Docs reviewed and Borrower becomes credit approved – third party items still pending
- Appraisal and third-party items arrive and file goes to underwriting
- Both borrower and property are approved – also, additional documentation requested
- Documents are provided to Underwriter to satisfy outstanding conditions
- Underwriter issues the Clear to Close (CTC) file goes to the Closing Department
- Title receives instructions and begins to prepare the final Closing Disclosure (CD)
- Our Closing Team and the Title Company likewise prepare closing docs
- All parties sign the closing documents at the Title company and Title faxes for funding
- Funding occurs the same day for purchases (while it will be 3 days later for refinances)
- Finally, setup auto drafts after your 1st Payment, watch for Junk Mail, etc.
- Next year, be sure to File Your Homestead, Contest Your Property Value, etc.