The Loan Process
STEP 1: Application for a Pre-qualification
Pre-qualification occurs before the loan process actually begins. After you complete a free and secured loan application on our website www.althas.com an Althas Loan Consultant gathers information about your income and debts, and makes a financial determination about how much house you may be able to afford. Within 3 days your Althas Loan Consultant will deliver a Loan Estimate that itemize the rates and estimated costs for obtaining the loan.
It's a good idea to know how expensive a home you can afford before you start shopping for one! If you are refinancing the loan on your existing home, then the pre-qualification process should help you decide whether refinancing is a good idea for you.
STEP 2: Finalizing the Application
Finalizing the application with all the necessary details is the beginning of the loan process and either occurs after you have found a property you want to buy or have determined that you wish to refinance the loan on your existing home. Your Althas Loan Consultant will assist you to complete the mortgage application for a particular loan program and you must at this time supply all of the required documentation for the loan processing. Various fees and down payment options are discussed at this time.
STEP 3: The Loan Processing
Your Althas Loan Consultant will typically submit the application package to a third party loan processing company who will be the one submitting the loan package to the lender when ready. The loan processor reviews the credit reports and documentation to verify your employment, debts, and payment histories. If there are unacceptable late payments, collections, judgments, etc., the processor requests a written explanation from you. The loan processor also starts requesting others to start working on your loan such as: orders the appraisal, title work, survey and more. Once recieved, the processor reviews the appraisal and survey and checks for property issues that may affect final loan approval. The processor's job is to put together an entire application package for the lender's underwriter.
STEP 4: Underwriting
The loan processor, when ready, submits the file to the lender's underwriter who is responsible for determining whether the application package prepared by the processor meets all the lender's criteria. If more information is needed, the loan is put into "suspense" and you will be contacted by the loan processor to supply more documentation.
If the underwriter approves the loan, the lender issues a conditional commitment to lend, works with your loan processor to clear all conditions to its commitment to lend, and then schedules a closing time. Conditions to the lender's commitment may include issues with credit, income, or the property that may arise during the processing and underwriting process.
STEP 5: Closing
The closing will occur after all conditions are cleared and the lender issues a full loan approval and a Clear to Close or CTC. At the closing, the lender "funds" the loan with a cashier's check, draft or wire to the closing agent, who disburses funds, in exchange for the title transfer to the property. This is the point at which you finish the loan process and actually refinance or buy the house, subject to the lender's loan. Closings occur at different places in different states. For instance, some states require that the closing take place at a closing attorney's office, while others use a title or escrow company. You may also be able to close at your home.
Your Althas Loan Consultant will be there at all times communicating with everyone involved in the transaction and will work with you, the processing team, the lender and the title company to make sure everything is finalized within the time frame and as smooth to you as possible.