What Happens After I’ve Applied For My Loan?
The mortgage loan application process first involves a stack of paperwork that you must submit, including pay check stubs, W-2 forms and bank statements. You may have turned in all the necessary paperwork to your lender. At this point, it is a waiting game. However, there are a few things that you can do to help expedite the process to see your home buying dreams come true.
The Evaluation Process
Your lender needs time to look over and process your loan by matching your income and debt documents submitted. Generally, lenders need between one and six weeks to process the paperwork. They must verify all the information submitted with the various financial entities, such as cross-referencing your credit history.
The large, estimated time gap may appear excessive, but lenders need the full six weeks to cover all the paperwork. You may have a complex financial background or the real estate market could be extremely busy with dozens of potential home buyers vying for evaluation. Be patient during this period and stay in touch with the lender to keep your application at the top of the pile.
Staying On Top Of Things
Lenders will often call borrowers, asking for additional information. This occurrence happens often so do not be alarmed. They may need another bank statement or pay check stub. Keep your paperwork as organized as possible at home to retrieve the necessary item quickly.
Fax, email or bring the paperwork to the lender as soon as you find it. They may not be able to move forward on any part of your loan until they receive that one piece of paperwork. Ask the lender if you can bring any other documents at the same time. There may be a discrepancy that needs to be cleared up, such as a late payment on a student loan.
The Closing Date
Lenders typically call their clients when the evaluation process is complete. If you are approved, the lender creates a closing date for your loan. This date signifies the end of the loan evaluation process and the official time you can move into the property.
In the meantime, the lender should go over all the line items in the closing papers, including all the various charges associated with the loan. You should have already received a “good faith” estimate of these charges near the beginning of the loan process. The estimate and final closing costs should be relatively close to the same amounts. Once the closing date has passed, you are welcome to enjoy your new home!
