The journey to buy a home involves understanding the loan process. Here’s a straightforward breakdown to help you through each stage:
1. Prequalification Interview
• Initial Discussion – Discuss your financial situation with the lender.
• Documentation – The lender gathers necessary documents like pay stubs and bank statements.
2. 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.
3. Loan Submission
• Assemble Package – All gathered documents are organized into a loan package.
• Underwriter Review – The package is sent to an underwriter for approval.
4. 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.
5. Loan Approval
• Notification – Once approved, all involved parties are informed about the decision
6. Documents are Drawn
• Finalization – Loan documents are completed and sent to escrow.
• Signatures – Borrowers sign the final paperwork.
7. Funding
• Review & Transfer – The lender reviews the loan package one last time.
• Wire Transfer – Funds are transferred electronically to cover the loan.
8. 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
What is your home worth? click here.
Homes for sale in Carmel Valley click here.
Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
