Behind the Scenes – The Loan Process
The Loan Processor
The loan processor assembles all the documents to complete your loan file; he or she knows which items are needed for a loan to be approved. He or she orders the supporting information, such as credit reports, property appraisals, and preliminary title reports, and prepares the document to verify your assets, credit history, and employment. Loan processing usually takes two to three weeks. A processor handles many files at the same time. Turnaround time on the different reports varies. You can help speed up the process by responding quickly to request for information. When your loan file is complete, the processor sends it the UNDERWRITER.
The underwriter decided whether, considering the risks, the lender should loan to you. The underwriter makes the decision under close supervision and using a host of guidelines from the lender.
When the underwriter approves your loan, it is written up as a Conditional Commitment to Lend. This commitment includes a list of condition that must be met before your loan will actually be made. The loan file is then passed on to the FUNDING department.
The funder is in control of your loan until it is funded, recorded, and closed. He or she sees that all condition in the Conditional Commitment to Lend are satisfied before the loan is sent to ESCROW.
The Escrow Holder
The escrow holder is a neutral third party, usually a title company (as explained earlier). The escrow holder receives the loan papers from the lender, prepares an estimated closing statement, and set up an appointment with the buyer to sign the loan papers.
After you sign the loan papers, they are returned to the lender. The funder does some last-minute checks, then released the loan money and the escrow holder.