We’ve designed our site to make it easy for you. This brief diagram will give you a good jump-start!
|Learn||Applicant||Learn all you can about the loan process and ask lots of questions.|
|Apply for Loan||Applicant||Complete, review, and submit your application. This will set the process in motion.|
|Connect with Loan Officer||Leader Bank||Your loan officer will reach out to you and review your application with you.|
|Credit Check & Prequalification||Leader Bank||We will assess your credit, income, and assets to quickly determine what loan(s) you qualify for.|
|Documentation||Applicant / Leader Bank||Paperwork is still a big part of the loan process. We will email you forms to sign and a checklist of documents we’ll need.|
|Rate Lock & Appraisal||Applicant / Leader Bank||Once we’ve discussed the loan amount, the type of loan, and the rate that’s best for you, it’s time to lock in your rate and order your appraisal.|
|Underwriting & Approval||Leader Bank||Our underwriting team will review and issue a decision detailing any conditions necessary for final loan approval.|
|Clear to Close||Leader Bank||Once we have cleared necessary conditions our underwriting and closing team will make final preparations to close.|
|Closing||Leader Bank||Loan documents are delivered to the closing attorney. The attorney will contact you to arrange a signing.|
|Funding||Attorney / Leader Bank||Once the signed documents are returned and reviewed, the closing attorney will request a wire transfer of the loan funds.|
The Loan Application Process
We will want to verify certain information about you and the property. Borrower information will include verification of income and employment, assets, and your credit history. You, the applicant, as part of your application process, will usually provide some of this information. Other information, such as your credit history, will be obtained directly from the credit bureaus. Lastly, we typically order an appraisal for the property and in most cases a legal description.
The Loan Approval Process
During the “processing” and/or “underwriting” period, your credit, assets, income, and other determinants are checked and compiled. Your loan is either approved with conditions, approved without conditions, or declined. Conditions are further documentation or requirements we will need to finalize prior to the closing of your loan. Final conditions are sometimes added for final approval. We do our best to help you through the process – remember, we are simply trying to meet conditions imposed by our Investors.
Since most loans are sold and serviced by other parties, the lender must verify that the loan can be sold upon close. Not to worry, no other terms of your loan can be changed after you have signed your final loan documents. When all conditions are met, your loan documents are drawn up and forwarded to the closing attorney to prepare for your closing.
Do not make any adverse changes to your financial “picture” during the loan process. Things as simple as applying for a new department store credit card to purchase a new appliance will at least force an explanation to be given and at worst may cause your loan not to fund and the approval to be withdrawn. Many times a final credit report update and additional calls to your employer may be required before funding the loan. Be patient and your loan will flow smoothly.