What are the different steps of a Loan Application?

You may think there are only two steps to a mortgage loan application process. Started and closed. This is not the case; however, there are nine different steps to get your loan from start to completion, and each team member has their own role, dependent on the step you are in.

The application process started

You’ve spoken to the mortgage loan officer and have filled out the application. From here, the file is given to a loan coordinator who requests additional information and loan documents from you. They fill out anything you may have missed and send out your initial disclosures. After receiving all the proper documentation, they move the file to loan processing.

In Processing

The Loan Processor will review all the loan documents the coordinator has gathered. They clean up the file, ensuring that everything listed in the loan application lines up with the documents they have, and then send the loan application to mortgage underwriting.

Initial Underwriting

The underwriter now reviews all that has been provided from the mortgage processor and the loan file and signs off on them. This includes the income calculation, assets from bank statements, and items to be addressed on your credit score dropped before closing review (in case the score moves). Underwriters, at this point, will either give an initial loan approval or a denial.

Conditional Approval

When the underwriter gives an initial loan approval or conditional approval, the file is sent back to your mortgage loan processor. They will work alongside the loan coordinator to create a list of additional loan documents that Underwriting will need.

It’s essential to get these documents back in a timely manner, as moving the file from conditional approval to final approval usually takes the most time. Once the additional documents have been received, the file is sent back to Underwriting.

Second Underwrite

The underwriter will now review the new items provided by the loan fulfillment team. If all the requirements are satisfied, they will issue final approval.

Final Approval

Congratulations, you’ve made it through the more difficult step of the mortgage loan process. The loan processor works to ensure compliance conditions on the loan are completed. It’ll likely be some unsigned disclosures from the start of the file.

Cleared to Close

Your file has been given the green flag to get you to the closing table. The Processor will complete a final employment verification and send the file to the closing team.

Closing

The closing team has started working with the title on the closing documents. The title will call you to schedule a time for the signing, often at their office. The title officer will review all the legal documentation you need to sign and provide you with a copy. See the dry close vs wet close guide for what happens at the table.

Loan Funding

The signed closing documents are then sent back to your lender, and a funder assigned to your file begins to send out the disbursements of funds.

So, who do I contact for help?

The short answer would be either of them. Both parties are here to help you throughout the entire home loan process. I would remember what stage of the mortgage application process you are in and contact the most applicable person for that stage.

If you are looking for a fantastic team to help you through getting a mortgage loan, please contact our team. He has his own in-house loan coordinator and Processor who work in the same office and have fantastic communication. Borrowers thinking about a job change mid-loan should also read changing jobs after mortgage approval. I’m currently doing a loan with this team, and they have made this a smooth process.