Step By Step Loan Process

Step By Step Loan Process

We always want to make sure that our buyers have a better understanding of the lending process it can be very hard to understand sometimes and a little stressful at times.

Below are 10 basic steps to the lending process, each of which is described here in top-level detail. Being well-prepared helps ensure a smooth lending experience. It’s important to us that you feel fully empowered and informed when it comes to making decisions about your home loan. With that being said, let’s begin!

1) Getting Pre-Approved

A pre-approval letter enables you to confidently search for a home that you can afford based on your credit, income and assets. Pre-approval is started by submitting an online, in-person or over the phone application. Your mortgage professional will also need supporting financial documents and disclosures signed electronically. 

2) Searching For Your Home

Once pre-approved, you then start shopping with your real estate agent. When you decide on a home you want to purchase, the terms of sale are negotiated and your agent presents your offer to the seller.

3) Selecting Your Loan Product

After you’ve submitted an offer with your real estate agent, and the seller accepts your offer, you then contact your loan professional to formally apply for financing on your new home. Additional docs and disclosures may be required before locking, then it’s on to loan processing. 

4) Home Inspection & Appraisal

After your offer is accepted, but before you finalize your purchase, a home inspection is performed to make sure the house is in good condition. If the property is deemed to be acceptable, an appraisal is ordered to determine the fair market value of the property. 

5) Underwritter's Review

Your loan processor reviews the entire loan file and sends all pertinent information to underwriter for final approval. The underwriter makes sure that you are in good financial standing, and that all tax, title, insurance, appraisal and closing documentation is satisfactory.

In-House Decision Making

6) Final Loan Approval

The underwriter will review and clear each of the items they requested during their review. If all underwriting conditions are met, the loan is approved and you proceed to closing.

7) Loan Documents Sent for Signing

After your loan has been approved, The lender will work up final loan documents and send them to the closing company. The closing agent will prepare your final documents, as well as the seller’s. The closing company will make arrangements to obtain signatures on these papers either through a mobile notary or at the closing office.

8) Loan Funding

Once docs are signed, they are sent back to lender for final verification. Upon approval, your loan funds are wired to the closing company and any residual monies due from you will need to be provided to the closing agent via a wire transfer or cashier’s check. All funds are then distributed by the closing company.

9) Confirmation of Recording

The final documentation step is the recording of the Deed of Trust and Warranty Deed in your name by the county clerk. Once this is done, you are the proud new homeowner of the property. Keys will likely be provided by the real estate agent. 

Congratulations! You can move into your new home!

We work very closely with some AMAZING lenders to make this process as easy and clear as possible.

Happy House Hunting!

Amy Mingo Headshot
Phone: 208-308-0105
Dated: August 25th 2015
Views: 3,587
About Amy: ...

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IdaHome Realty
1126 Eastland Dr N #100
Twin Falls, ID