1st Time Homebuyer Seminars ..... Processing & Underwriting The Loan. Now that we have covered in the 1st Time Homebuyer Seminars, the The Opening Questions, Pre-Qualification Process, process of Choosing A Realtor, Shopping For A House, and Applying For A Mortgage. The next component of the 1st Time Homebuyer Seminars is putting the Loan into process and Underwriting the loan.
Once the Buyers have finished signing the Loan Application and Disclosures, and I have collected all their documents, I put the Loan into Processing by:
- Registering the Loan - All of the information is uploaded into our system. This will enable everyone who will be working on the file to have full access to all of the information.
- Appraisal - Is ordered at this time, and in our case the Appraiser will be given 6 business days to do the appraisal.
- Tax Transcripts Are Ordered - The last two years of Tax Returns are ordered from the IRS on every Loan.
- Social Security - A report of the activity on the Borrowers Social Security Number is ordered. These days it is not unusual for other names to show up under the Borrower(s) Social Security Number. This could be for a number of reasons other than fraud. Such as when credit was pulled on someone else, the person pulling the credit might have put in the wrong Social Security Number, or the wrong Social Security Number was use for the Borrower(s) when their credit was previously pulled. When this happens the other person's name will show up on the social Security Report.
- Underwriting - While all of the above are being done the file is forwarded to the Underwriter who will at this time do an initial review of the file to make sure the file is complete. After doing the initial review the Underwriter will note the file for any additional documentation that might be needed, and pass it on to the Processor.
- Processor - The Processor is responsible for collecting any additional documents needed, and to contact the Borrower(s) for any clarification for documents turned in with the file. The Processor will hold onto the file until all the Borrower(s) documentation is completed and explanations received, as well as receipt of Tax Transcripts, Social Security Report, and Appraisal. The Processor is also responsible for obtaining employment and income verification from the Borrower(s) employer. Once the file is complete the Processor will return the file back to the Underwriter to complete Underwriting the loan.
- Closing Department - As soon as the Underwriter completes Underwriting the loan and approves it, the file is sent to the Closing Department with all the conditions needed to be completed before the loan can be "Cleared to Close". The Closing Department at this time will issue a Commitment Letter to the Borrower(s), their Attorney, and Realtor/Agent, usually the same day. The Commitment Letter will contain all the conditions the Borrower(s) still have to meet, and a list of items the Attorney will need to do to prepare the Loan for Closing.
It is both a hectic and exciting time once the Loan Commitment Letter is given to the Borrower(s), because now everyone needs to get started right away in completing all the instructions and conditions on the Loan Commitment Letter before the Closing. This takes us to the next topic of the 1st Time Homebuyer Seminars, "Preparing For The Closing" in which I will cover the most common Borrower(s) conditions, and instructions for the Attorney.
Previous Blogs In This Series:
- 1st Time Homebuyer Seminar Series
- 1st Time Homebuyer Seminar ...... Opening Questions
- 1st Time Homebuyer Seminars ..... Pre-Approval Process
- 1st Time Homebuyer Seminars ..... Choosing A Realtor
- 1st Time Homebuyer Seminars ..... Shopping For A House
- 1st Time Homebuyer Seminars ..... Applying For A Mortgage
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Info about the author:
George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com
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