At New American Mortgage in Riverside, California, we walk you through the entire loan process from prequalification to approval of all your bank loans. Discover a fast and efficient way to acquire your loans through our simple process, including:
• Closing • Approval • Application • Underwriting • Prequalification • Processing of Estimated Loan
By gathering information about your income and debts, the lender makes a financial determination about how much house you are able to afford. Moreover, if you are refinancing a loan on your existing home, the prequalification process helps you decide whether refinancing is beneficial or not for your situation.
Once you have either found a property to buy, or determined to refinance the loan on your existing home, you are asked to complete a mortgage application for the loan program of your choice. Various fees and down payment options are discussed, and within 3 days, you receive a Good Faith Estimate (GFE) and a Truth-In-Lending disclosure (TIL), itemizing the rates and estimated costs for your loan.
Processing of Estimated Loan
While manual underwriting does occur, the majority of application packages are processed by an automated underwriting system that provides the lender with the documentation necessary for loan approval.
If unacceptable payment issues are found, the processor requires a written explanation from you. The appraisal and survey are also reviewed, checking for property issues that may affect final loan approval.
The underwriter determines whether the application package prepared by the processor meets all the lender's criteria. In order to ease the approval process and avoid putting your loan on "suspense," due to inadequate documentation, make sure you provide as much information as possible.
Upon approval, the lender issues a conditional commitment, orders title insurance, and works with you to clear all conditions to its commitment to lend, before scheduling a closing time. These conditions may include any issues that came up during the processing and underwriting process.
After all conditions are cleared and the lender issues a full loan approval, the closing takes place as the lender "funds" the loan with a cashier's check, draft, or wire to the closing agent, who then disburses funds in exchange for the title transfer to the property. Now, the loan process is finished and you have legally refinanced or bought your home.
Closings occur at different places in different states. Some states require the closing take place at a closing attorney's office, while others use a title or escrow company. It may even take place at your home.
Contact us in Riverside, California, to request more information on our mortgage company, and let us walk you through the entire loan processing system.