Prequalification occurs before the loan process actually begins. We will gather information about your income and debts, and makes a financial determination about how much house you may be able to afford or the loan amount on a refinance.
It's a good idea to know how expensive a home you can afford before you start shopping for one! If you are refinancing the loan on your existing home, then the prequalification process should help you decide whether refinancing is a good idea for you.
The application is the beginning of the loan process and either occurs after you have found a property you want to buy or have determined that you wish to refinance the loan on your existing home. You complete a mortgage application for a particular loan program and, supply all of the required documentation for processing. We will go over any loan scenario and how the loan will be structured at this time.
We will submit the application package to an automated underwriting system that will provide the lender with the necessary documentation needed for loan approval. If there are items that are needed that we did not initially ask for we will know them at this point. We will then open the escrow and title and will package the entire file for submission to the lender for their review.
The lender's underwriter is responsible for determining whether the application package prepared by us meets all the lender's criteria. If more information is needed, the loan will be approved subject to the conditions needed.
The closing will occur after all conditions are cleared and the lender issues a full loan approval. Typically on a refinance the final loan documents are delivered to us and we will set up a time to sign them at your home or wherever is convenient for you. On a purchase transaction the escrow company usually prefers the clients to sign in their office.
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