Pennsylvania Home Loan Process
From Application to Closing
Many borrowers wonder about what actually goes on between the period of time between their initial application and the closing of their Pennsylvania mortgage loan. This step by step explaination of the process will help you gain a better understanding of how the process of obtaining a mortgage works.
Step One: Applying for a Home Loan
When you fill out an application with iLoan Financial we ask you several questions to help us determine your financial situation. This is information is key in our quest to help you obtain the best mortgage program and interest rate for your particular situation. After the initial application is filled out, you will be contacted by one of our experienced mortgage consultants. After a brief telephone interview, your loan consultant runs your specific financial situation and mortgage program requirements through our extensive network of lenders. The reason why we run your loan scenario by several lenders is to find you the best available rate and program.
Step Two: Pre-Qualification
Once iLoan Financial obtains all of the nessicary information, we consult our network of Pennsylvania mortgage lenders in order to determine exactly what mortgage programs you qualify for as well as your interest rate. Lenders analyze your information in order to determine if you can afford to repay the loan under the specified terms (income/assets), and they also look at your payment history on prior loans (credit score). These are the two major points that will effect the terms under which you will recieve the mortgage loan.
Different lenders specialize in dealing with different types of borrowers. We realize that every borrower has an individual situation, and we pride ourselves on meeting your special financing needs.
Step Three: Arranging the Loan Package
Once we have selected a lender who meets your specific mortgage needs, we will then send your information to our processing department. This department orders the credit reports, appraisal, and communicates with the lender. The processor and your mortgage loan consultant work together in order to obtain any further information that the lender requires in order for you to close the loan. After all of the requested documentation has been compiled, the loan package is then sent to the lender.
Step Four: Lender Underwriting
When the lender receives your loan package, it is sent to their underwriting department. An underwriter reviews your loan package in order to determine if it is acceptable. The underwriter needs to give the approval for the loan to be funded. Once the underwriter reviews the package and decides that it is acceptable, the loan is ready to be funded.
Step Five: Closing
After the loan is approved, the lender contacts us, and the settlement agent. A date is scheduled for when the loan documents are to be signed, and when the loan is to be funded. Settlement typically takes place in a settlement company or at an attorney's office. A closing agent will guide you through the signatures, make all of the appropriate recordings, and disburse the funds. Congratulations, you have officially closed on your new loan!
Closing Checklist- Identification ! (Driver License or any government sanctioned photo ID)
- If any closing costs are to be paid, bring a certified check ! (Personal checks are not accepted)
- Proof of Homeowners Insurance!
- Make sure that the rate, term, address and all other conditions on the loan documentation are correct!
Common Closing Costs for your Pennsylvania Mortgage
