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FYI
Understanding
The Loan Process
At Corridor Mortgage Group we strive to make the loan application process as smooth and efficient as possible. To accommodate your personal needs and busy schedule, we provide a number of ways in which you can make a loan application:
- Personal appointment with a loan officer
- Phone interview with a loan officer
- On-line application
- Download an application and mail or fax back to us
Filling out an application is just the first step in the loan process. To help you become an informed consumer, here is how the process works:
Streamline Application & Automated Underwriting
Whatever method you use to submit a loan application to Corridor Mortgage Group, if it meets minimal basic requirements, we will electronically submit the application for immediate underwriting approval to either FNMA or FreddieMac.
This will allow us to notify you within hours of the status of your acceptance and any "conditions" required to fulfill the underwriting guidelines.
Once the status of your application has been established, your loan officer will be in contact with you to take the next step.
Documenting Your Loan Application
The basic loan application, also called form 1003, is the first form to be filled out in applying for a mortgage loan. This form documents your basic information: name, address, housing records, employment history, assets and liabilities, credit history and other information required by governmental regulating agencies. It is important to provide complete and accurate information on this form.
In addition, you will sign other documents that will educate you as a consumer, disclose relevant information, as well as outline the relationship between you, the consumer, and Corridor Mortgage Group, your mortgage broker. Your loan officer will consult with you in your decision to either lock-in the current interest rate or float the interest rate until a later time.
You will also be asked to provide certain documents to verify the information contained on the 1003, such as bank statements, pay stubs, tax returns, or W-2's.
During this time your loan officer will obtain a credit report that will reveal your credit history. Please be assured that your private and financial information will be safeguarded with our Privacy Policy.
Your loan officer will also interview you to understand your financial goals and objectives and find out what is important to you. With literally hundreds of loan products to choose from, they will help you find the loan product that works best for you in your situation.
From this interview as well as the credit report and 1003, your loan officer will be able to issue a preliminary loan approval. This will tell you for how much you qualify and which program best fits your needs.
If you are thinking of purchasing a home, it is wise to go through the loan approval process before you begin your home search.
When all the documents have been signed and assembled, the loan package is then ready for the next step.
Processing Your Application
While your loan officer will continue to work with you throughout the entire process, they will submit your loan application package to one of our experienced loan processors. Your processor will analyze the file for completeness, then verify income, employment, and housing information. They will be in contact with a title company to order the title work on the property, as well as an appraiser to order the appropriate kind of appraisal. Finally, they will check to see that the loan application meets the qualifying guidelines of the investor and loan program selected.
If any information is missing or other documentation is needed, they will be in contact with you. If and when they do, it is important to carefully and quickly comply with their instructions so that the loan process is not delayed in any way.
Within 3 business days you will be sent a number of disclosure documents such as a Good Faith Estimate of settlement charges, a Federal Truth-In-Lending Disclosure, and other documents relevant to your transaction. You should carefully review these documents and then return them promptly. Of course, should you have any questions, both your loan officer and processor are here to assist you.
In a nutshell, the processor's job is to prepare your package for submission to the investor so that it has the greatest chance of being accepted for loan approval. Because of their many years of experience in the mortgage industry, they have a high rate of success in submitting loan packages to investors ? which is the next step in the process.
Submitting Your Application To An Investor
When all the documentation is complete and the file meets the qualifying criteria of the investor and their loan product, the loan processors at Corridor Mortgage Group submit the loan package to the investor.
The investor's underwriters then take the documentation and conduct their own analysis and verification. Sometimes they will come back with "conditions" - requests for further information or documentation. Those conditions will be communicated to you through the processor. Again, it is vital to reply as quickly as possible so that the process is not stalled. In the event your application previously received a FNMA or FreddieMac "automated underwriting approval," the underwriters are basically verifying any conditions that may have arisen.
When the investor is satisfied that all "conditions" are clear, then their underwriters issue what is called a "Final Loan Approval." While some of the "conditions" may still remain outstanding, as long as they are fulfilled, you can be assured that your loan will close. However, it is important to know that if those conditions are not fully meet before settlement, your loan approval may be withdrawn.
Now it's time for the next step.
Scheduling & Conducting The Settlement
Your loan officer together with the loan processor will work with you in scheduling the loan closing with the title company that performed the initial title search.
When you attend settlement, you will need to bring a driver's license or other valid photo ID. If you need to bring funds to the closing table, you will be instructed as to how much and in what form to bring those funds.
For further information about some of the typical closing costs associated with settlement, see [CLOSING COSTS DOC]
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