The journey to buy a home involves understanding the loan process. Here’s a straightforward breakdown to help you through each stage:
- Prequalification Interview
- Initial Discussion: Discuss your financial situation with the lender.
- Documentation: The lender gathers necessary documents like pay stubs and bank statements.
- Order Documents
- Essential Reports: The lender orders your credit report and property appraisal.
- Verification: They verify employment, mortgage or rent history, funds for closing, and may seek landlord ratings.
- Title Report: A preliminary title report is obtained to ensure there are no legal issues with the property.
- Loan Submission
- Assemble Package: All gathered documents are organized into a loan package.
- Underwriter Review: The package is sent to an underwriter for approval.
- Documentation
- Verify & Resolve: As documents arrive, the lender reviews them and addresses any issues.
- Additional Requests: If needed, the lender may ask for more information.
- Loan Approval
- Notification: Once approved, all involved parties are informed about the decision.
- Documents are Drawn
- Finalization: Loan documents are completed and sent to escrow.
- Signatures: Borrowers sign the final paperwork.
- Funding
- Review & Transfer: The lender reviews the loan package one last time.
- Wire Transfer: Funds are transferred electronically to cover the loan.
- Recording Documents
- Official Record: The title company records the deed of trust with the county recorder’s office.
- Closing: Escrow closes, and the home officially becomes yours.
Source: California Title Company
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
