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The OwnArizona™ Loan Process
Pre-Qualification
Pre-qualification occurs before the loan process actually begins, and is usually the first step after initial contact is made. The lender gathers information about the income and debts of the borrower and makes a financial determination about how much house the borrower may be able to afford. Different loan programs may lead to different values, depending on whether you are qualified for them, so be sure to get a pre-qualification for each type of program you are suited for.
Application
The application is actually the beginning of the loan process and usually occurs between days one and five of the loan. The buyer, now referred to as a "borrower", completes a mortgage application with the loan officer and supplies all of the required documentation for processing. Various fees and down payments are discussed at this time and the borrower will receive a Good Faith Estimate (GFE) and a Truth-In-Lending statement (TIL) within three days that itemizes the rates and associated costs for obtaining the loan.
Processing
Processing occurs between days 5 and 20 of the loan. The "processor" reviews the credit reports and verifies the borrower's debts and payment histories as the VODs and VOEs are returned. If there are unacceptable late payments, collections for judgment, etc., a written explanation is required from the borrower. The processor also reviews the appraisal and survey and checks for property issues that may require further discernment. The processor's job is to put together an entire package that may be underwritten by the lender.
Underwriting
Lender underwriting occurs between days 21 and 30 or sooner. The underwriter is responsible for determining whether the combined package passed over by the processor is deemed as an acceptable loan. If more information is needed, the loan is put into "suspense" and the borrower is contacted to supply more documentation.
Mortgage Insurance
Mortgage insurance underwriting occurs when the borrower has less than 20% of the loan amount to put towards a down payment. At this time, the loan is submitted to a private mortgage guaranty insurer, who provides extra insurance to the lender in case of default. As above, if more information is needed the loan goes into suspense. Otherwise it is usually returned back to the mortgage company within 48 hours.
Pre-Closing
Pre-Closing occurs between days 25 and 30. During this time the title insurance is ordered, all approval contingencies, if any, are met, and a closing time is scheduled for the loan.
Closing
Closing usually occurs between days 25 and 45 of the loan (depending upon the designated length of your escrow). At the closing, the lender "funds" the loan with a cashier's check, draft or wire to the selling party in exchange for the title to the property. This is the point at which the borrower finishes the loan process and actually buys the real estate.
An OwnArizona™ Mortgage Lending Group Loan from Start to Finish
The most important step in obtaining a first time home loan is to find a mortgage provider who will lend you the money you need for your dream home and match that with your credit. Listed below are many of the other steps that may help you being a first time homeowner or someone that refreshing themselves on all the chains of command to get that loan you want.
Step One "The Mortgage Loan Application": Filling out an OwnArizona™ Loan Application form is the first step in obtaining a mortgage. Completion usually takes place over the phone with the OwnArizona™ Loan Officer. You'll be asked for information about employment, earnings, savings, and so forth. You'll be asked to provide documentation, such as W-2's, recent pay stubs, and perhaps even copies of your income tax return. The OwnArizona™ Loan Officer will also check your credit report. It's important to make sure your application is complete and accurate. Missing or incorrect information can delay the loan or can even cause you to be turned down for a loan. The OwnArizona™ Loan Officer will take time with you and not rush through the process.
Step Two "Mortgage Loan Processing": Once your OwnArizona™ Loan Application has been completed, the OwnArizona™ Loan Officer passes the application to the processor. The processor's job is to organize the paperwork and make sure all the documentation is complete. It's their job to make sure that the OwnArizona™ Loan Officer hasn't missed anything. It's common for the processor to give the borrower a phone call to verify facts or request additional documentation. The processor will analyze the numbers. They will evaluate your income and how much cash you are bringing to the deal. They may also update your credit report if there's anything that needs to be updated in your favor.
Step Three "Underwriting": When the processor has gotten all the paperwork in order, they turn the file over to the underwriter. The underwriter's job is, essentially, to check the work of the processor. The underwriter will compare the facts in the applicant's file to the guidelines of the loan type being offered, and make sure that all the conditions are met favorably. As long as you can meet all the guidelines of the loan, your loan will be approved. Sometimes there's still some missing information at this point that will delay your loan approval. For instance, if an appraisal of the property is required, the appraisal may not have been completed yet. In cases like these, the underwriter will approve the loan, conditional upon meeting certain criteria. Then they will send the loan back to the processor, who will make sure the conditions get met -- such as making sure the appraisal comes in at a high enough value.
Step Four "Closing and Funding": Once the loan is approved by the underwriting department, it goes to closing. Closing is the process where the lender's office communicates with the title company to get all the paperwork in order for settlement. At this stage, the money is made available for the loan.
At the Settlement Table: The paperwork is done. The conditions of the loan have been met at every stage of the way. The funds are available. Before you get to the settlement table, however, your lender should give you a Good Faith Estimate of Settlement Costs. You should review this document and make sure you understand it before proceeding to settlement. It all comes together at the settlement table. At settlement, several parties are represented. The buyer and the buyer's OwnArizona™ real estate agent will be there, as will the seller and his agent. A settlement attorney, who acts on behalf of both the buyer and the seller, conducts the final transaction. If every person has done his job along the way, the settlement will be smooth, with no last-minute problems.
Buyers and sellers will each be given a settlement sheet and asked to review the numbers to make sure they are correct. Since the numbers are often confusing, the OwnArizona™ agents and attorneys are available to answer any questions that may arise.
Closing Costs "What to Expect": There are many costs associated with closing on a mortgage. In addition to your down payment and the settlement attorney's fees, here's what else you should expect to pay in closing costs for your first time home loan.
• Loan origination fee and discount points - Based on a percentage of the total mortgage cost, this is how lenders are compensated for their services.
• Appraisal fee - $300 to $400. A professional appraiser visits the sale property to determine its value and condition.
• Credit report fee - $50, to determine the borrower's creditworthiness.
• Title company fee - $250 - $350. This is how the title company is compensated for their services of researching the title and preparing the deed.
• Title insurance - Usually 1/2 to 1% of the total mortgage cost. Title insurance ensures that if there is ever a problem with clear title to the property, the lender's money will not be at risk.
• Underwriting fees, document preparation fees, and processing fees - These are costs incurred during the loan application process.
• Recording fees and state and transfer taxes - taxes and fees paid to the locality where the property is located.
• Private mortgage insurance - often required by a lender if your down payment is less than 20% of the property's value.
• Mortgage interest for the current month.
• Homeowner's insurance - you will probably need to show proof of this at settlement.
• Property taxes.
• Homeowner Association Fees After settlement, most mortgage lenders will sell your loan to another company, who will then take over the servicing of that loan. This is the norm rather than the exception. You may want to ask at settlement what you can expect in this regard.
Applying for refinancing mortgages is easy, please select the option most convenient for you:
3. Call us and we will take your application over the phone at: (520) 977-7946.
4. Have a OwnArizona™ Refinancing Mortgages Loan Officer contact you.
OwnArizona™
2141 N. Alvernon Way
Tucson, Arizona 85712
24-hour Fax: (520) 545-0113
The OwnArizona™ Lenders Group
We will always treat you like an individual. Each borrower's scenario is unique. Closing costs, rates and payments are not always dictated by the borrower and their credit. Today borrowers can choose the payment, closing costs and rate that best matches their objectives.
Go ahead, pick up the phone and call us today (520) 977-7946.
Or, contact us by email for Tucson & Southern Arizona real estate results, not hype.
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