Steps in the Loan Process
STEP 1: The Application
The initial application interview is the key to the loan process going smoothly and closing on time. This is when your loan officer obtains all pertinent documentation from you, so as to avoid unnecessary problems and delays. Additional documentation is often required as your lender moves forward in the process. The extent of additional documentation will be determined largely by your past history and credit record.
STEP 2: Credit Report
We obtain a standard factual credit report from a credit reporting agency. This will be a tri-merge of information from the three major credit bureaus. It will be used to analyze your credit history. If an unfavorable item (late payment, collection, recent inquiry, etc.) appears on the report, a letter of explanation may be required, along with documentation to help us resolve any potential difficulty.
STEP 3: Obtaining Loan Documentation
Soon after your loan application is completed, Mortgage Master Service Corporation will verify employment, deposits from your bank, mortgage or landlord payment histories, a preliminary title report and other necessary supporting documentation. If a large sum of money has recently been deposited into your accounts, an explanation and documentation will be needed to substantiate the source of funds.
STEP 4: Completing The Loan File
Supporting documentation starts arriving into our office within about one week. As it comes in, your loan processor checks for any problems that might arise and requests additional items needed. This part of the loan process normally takes two to three weeks.
STEP 5: Loan Submission
Once all of the necessary documentation has been received and properly packaged for presentation, the loan processor submits the completed file to the underwriter for formal loan approval. Mortgage Master Service Corporation is unique in that we have two in-house underwriters. Files are not normally sent out to some unknown or uncaring entity, taking valuable processing time.
STEP 6: Loan Approval
Loan approval generally takes from 24 to 72 hours (one to three business days). You will be notified of the loan approval and any conditions that may be required prior to drafting loan documents or closing escrow. The loan approval is the beginning of the closing process.
STEP 7: Insurance
After your loan is approved, and before the closing documents can be drafted, we are required to order an insurance binder for your new home. This comes from the insurance agent of your choice. It is best to contact your agent ahead of time so they are prepared and do not delay the closing. You will need to provide Mortgage Master Service Corporation d/b/a Northwest Lending Group with the name and phone number of your agent.
STEP 8: Loan Documents Are Drafted & Sent To Escrow
Unless other conditions are required, within 48 hours after the loan approval, the loan documents (including the note and deed of trust) are completed and sent to the escrow company. Once again, Mortgage Master Service Corporation drafts loan documents in-house, not relying on outside agencies to perform this service. After the escrow officer completes escrow’s portion of the final paperwork, they call the borrower to come in for final approval and signatures. The escrow officer notifies the borrower at this time of how much money, in the form of a cashiers check, will be needed to close the transaction.
STEP 9: Funding
Once all parties have signed the final documents, they are returned to Mortgage Master Service Corporation, who reviews them one last time. If all of the paperwork has been properly executed, the loan funds are transferred by wire to the title company.
STEP 10: Recordation
When the title company receives the funding check from the lender, they record the Warranty Deed and Trust Deed, making the lender’s security for the loan a matter of public record. This is normally completed within 24 hours. Escrow is now officially closed, and the home is yours!