Loan Process
This process is typical of the steps in acquiring a mortgage loan for a new purchase, refinance, or home equity.
The Application—One of the Sierra Pacific mortgage specialists will acquire your information (employment,income,mortgage history, assets,etc.) either over the phone or in person.
Initial Paperwork—You will be invited into the office to meet the mortgage specialist and to sign initial documents. These documents include disclosures and a Good Faith Estimate of closing costs which are required by law to be completed within 72 hours of your loan application. Payment estimates should always include the amounts for principal, interest, homeowner’s insurance, and property taxes. Anything less than that will give you an incomplete estimate of your total monthly payments. We try to have a VERY accurate Good Faith Estimate, so that on your closing date you will be fully aware of costs to be incurred monthly. We do not believe in underestimating up front.
Income Documentation—We will need to document all information which we obtained at application such as paystubs, W2’s, asset documents and other documents, depending on the individual situation as well as type of loan that you have requested.
Pre-approval—After we review the application and all submitted information, we can pre-approve you for a mortgage. We can write a preapproval letter to your realtor at this time. With the pre-approval, you can begin shopping for your new home.
Title and Appraisal—Once you have a signed purchase agreement with the sellers, we will order a title search and commitment on your new property. We will also order an appraisal.
Inspections and Home Warranty—If you have negotiated inspections and home warranty as part of your contractual agreement with the sellers, the realtor will order and coordinate this.
Hazard Insurance(Home owners insurance)—you are required by the lender to have insurance on your property. This is for your protection against unforeseen damage to your home.
Underwriting—Your loan is reviewed by the lender’s underwriter. Sometimes they require additional documentation to complete your loan.
Clear to Close—After all conditions have been cleared by the lender, the mortgage company will clear the loan for closing.
Hud1—closing statement is sent out to the mortgage company and all realtors involved. This statement is a breakdown of all charges involved in the loan. This statement should be very similar to costs disclosed initially on the Good Faith Estimate. Your mortgage specialist will call you and let you know the amount needed for closing. You will need to bring in a certified check made out to the title company.
The Closing—The closing documents will be sent to the title company. Both buyers and sellers sign final documents. The title escrow officer will go over all documents and the mortgage specialist will be at closing to answer any questions that you might have.
Congratulations!!! You are a homeowner!!!!!!