Loan Process Steps

Prior to submitting an offer to purchase a home it will be necessary to get pre-approved. This process is real simple and shouldn’t take much more than an hour of your time. First, make an appointment. We have provided you with a checklist of things to bring to your appointment.

At the appointment we will set up a loan application with all your verified income and assets. Once the loan application is completed we will run an automated underwriting program. This program developed by Fannie Mae (DU or DO version) or Freddie Mac (LP) analyzes your credit history and income. It will then approve your application (hopefully) with a list of conditions needed to close your loan. It must be noted that many investors have a second set of guidelines. This early pre-approval does not guarantee a loan, however it is a very good indicator for a full approval. At this time all the items in the checklist will be collected, loan application and disclosures including a Good Faith Estimate needs to be signed. Mann Mortgage will order Title and appraisal. This process usually will take less than a week. During this time the Loan Processor will go thru the file and make sure we have all the documents needed. Once Title and appraisal are in, the file is sent to the Underwriter for final approval. Depending on work load this usually takes 24-72 hours. Once all conditions are met we set up your closing. This entire process usually takes less than 30 days. In fact many deals are closed in less than three weeks. Refinance transactions are handled very much the same manner.

It must be noted that if your loan is complicated, such as a property in need of repairs or a transaction with a “hostile” seller this process can take much longer. Please be aware of this prior to “locking “an interest rate or committing to a closing date where you may lose your earnest money deposit. Third parties quite often are the cause of delayed closings.