What Happens After I Complete My Loan Application?
Let’s say that you have (1) contracted to purchase a home; (2) completed the loan application; and (3) provided all required documents to your loan officer.
What happens now, you ask?
Your loan will be submitted for underwriting. In short, underwriting is the lender’s review of all the information submitted compared to FannieMae and/or FreddieMac lending guidelines to determine if it within their risk ratios. (More on underwriting will be featured later.) Once the underwriting process has been completed, your loan officer should tell you the results. Here’s what you should look for in your loan officer’s remarks:
1. Make sure that your loan officer reviews your underwriting results with you in terms that you understand. If something confuses you, ask for further explanation.
2. The loan officer should tell you if the results of the underwriting will affect the terms that you outlined in the Good Faith Estimate (GFE), such as your interest rate.
3. Expect updates: if you are working with a conscientious loan officer, you will be kept abreast of your loan’s progress. The underwriting process can take 24-48 hours or several days to weeks, depending on the volume of loans the lender is processing at any given time.
4. Your loan officer should tell you immediately if the underwriter has asked for additional documentation even if it is something that seems out-of-the-ordinary or trivial. If necessary, your loan officer should guide you through providing the underwriter with whatever information s/he requests as quickly as possible.
No matter what type of loan you need or how much you need to borrow, your loan officer’s job is to make the process clear and easy for you. Your questions and concerns should be addressed and any issues that arise addressed immediately. By working with you, your realtor and closing agent, your loan officer should make the entire loan process seamless and stress-free.
For further information or definitions of terms, see our website: www.PremierMortgageSource.com