Pre-qualification occurs before the loan process actually begins, and is usually the first step after initial contact is made. Here at Jordan Pacific Mortgage we can either sit down with you in person or we can discuss different options with you over the phone. In the initial conversation we will gather information about your income, debts, and future goals; from there we will be able to make a determination about how much of a loan or interest rate you may be able to afford. With a variety of different loan programs available in the mortgage markets we can usually find a program that fits what you are looking to achieve.
The application is actually the beginning of the “loan process”. The client, now referred to as a borrower, completes a mortgage application with the mortgage loan originator. We will need a variety of information, such as: Full name, SS#, DOB, present and past home addresses, employment history, and a list of all debt obligations. We will send the loan application to you to sign or you can sign via e-mail/Docusign. Once we receive your acknowledgement of the loan application, we will just need your supporting documents to complete the file.
Our in-house processor’s will review your credit report, verify your debts and payment histories while waiting for the VODs and VOEs to be returned. If there are unacceptable late payments, collections for judgments, etc., a written explanation will be required. The processor also orders and reviews the appraisal and checks for property issues that may require further documentation. The processor’s job is to put together an entire package that may be underwritten by the lender. The processors job is one of the most important jobs and we are lucky to have some of the best processors out there working for us.
The underwriter is responsible for determining whether the completed package sent over by the processor is an approvable loan. We work with a variety of lenders and every lender has their own set of guidelines. Typically, the underwriter will request more information or clarifications from the original loan package. Then the loan is put into “suspense” and the processor is contacted to supply the requested documentation or clarifications in order to obtain loan approval.
During this time the title insurance is ordered, all approval contingencies, if any, are met, and a closing time is scheduled for the loan.
At the closing, the lender “funds” the loan with a cashier’s check, draft or wire to escrow. When the loan proceeds are received by escrow and any required funds from the borrower are in hand, the escrow agent will “close” the transaction. Closing means that they will make all required money transfers and record the new grant deeds. This is the point at which the borrower finishes the loan process and either owns a new house or has completed refinancing of their previous home loan.