The Loan Process

Information is the key to meeting our goal of simplifying the loan process for you. We will give you all the information you need, so you will know what to expect each step of the way, with no surprises. Our friendly e-mails will keep you up to date with what is happening throughout your loan process, to keep things simple and stress-free.

Here is an outline of the typical home buying process we will guide you through:

1. Pre-Approval

Based on your income and credit information, we can give you a written statement stating our preliminary determination that you would qualify for a specified loan amount under our loan guidelines. A pre-approval letter is usually good for 60 to 90 days.

2. Choose a Realtor

A good realtor can help you find the home you are looking for, in the area you want, and can help you with offers, negotiations and contracts.

3. Contingency Period

Once you have found your home and made an accepted offer, you will sign a contract, which is legally called a “contingent contract.” This means you are agreeing to purchase the property contingent upon certain conditions being met. The most usual contingency is that the home must be free of major defects, subject to inspection by a qualified home inspection. The contract has a contingency period that typically allows you 10-18 days to collect more information and decide whether you want to proceed or not, without forfeiting your deposit. During this time, you will work with

Your realtor to:

  1. review and approve the Seller’s Real Estate Transfer Disclosure Statement
  2. review and approve the Preliminary Title Report
  3. arrange for inspections
  4. approve inspection reports

Your loan originator (that’s us!) to:

  1. satisfy any loan contingencies in the purchase contract

4. Homeowner’s Insurance

You must have arranged for homeowners insurance before close of escrow. If your new home is in a flood zone, you will need flood insurance — we can help you with that determination and recommend appropriate insurance companies.

5. Document Signing

We will prepare the necessary documents for your signature and will send them to the escrow company for signing. We will give you copies of all title and loan documents you sign.

6. Down Payment and Closing Costs

Several days before closing, you will be asked to go to the escrow company to sign documents and make a down payment (you need to bring a cashier’s check for this). The escrow officer will walk you through a Buyer’s Estimate Closing Statement, which will itemize your costs and credits associated with the purchase. Note that this is an estimate, but it will closely resemble your final amounts.

7. Funding

As your loan originators, we will receive your signed loan documents and any other loan condition documentation from the escrow company. When we have reviewed and approved the documentation, we will wire your loan funds to the escrow company.

8. Close of Escrow

When the escrow company verifies the funds transfer, they arrange for the deed of title to be recorded in your at the office of the County Recorder.

Hooray! It’s all done and you can move into your new home! Congratulations!