Brian R. Barnes
nmls # 238617
a.k.a 'The Loan Professor'
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The application is actually the beginning of the loan process and usually occurs between days one and five of the loan.
The buyer, now referred to as a "borrower", completes a mortgage application with the loan officer and supplies all of the
required documentation for processing. Various fees and down payments are discussed at this time and the borrower will
receive a Good Faith Estimate (GFE) and a Truth-In-Lending statement (TIL) within three days that itemizes the rates and
associated costs for obtaining the loan.

Processing occurs between days 5 and 20 of the loan. The "processor" reviews the credit reports and verifies the
borrower's debts and payment histories as the VODs and VOEs are returned. If there are unacceptable late payments,
collections for judgment, etc., a written explanation is required from the borrower. The processor also reviews the
appraisal and survey and checks for property issues that may require further discernment. The processor's job is to put
together an entire package that may be underwritten by the lender.

Lender underwriting occurs between days 21 and 30 or sooner. The underwriter is responsible for determining whether
the combined package passed over by the processor is deemed as an acceptable loan. If more information is needed, the
loan is put into "suspense" and the borrower is contacted to supply more documentation.

Mortgage Insurance
Mortgage insurance underwriting occurs when the borrower has less than 20% of the loan amount to put towards a down
payment. At this time, the loan is submitted to a private mortgage guaranty insurer, who provides extra insurance to the
lender in case of default. As above, if more information is needed the loan goes into suspense. Otherwise it is usually
returned back to the mortgage company within 48 hours.

Pre-Closing occurs between days 25 and 30. During this time the title insurance is ordered, all approval contingencies, if
any, are met, and a closing time is scheduled for the loan.

Closing usually occurs between days 25 and 45 of the loan (depending upon the designated length of your escrow). At
the closing, the lender "funds" the loan with a cashier's check, draft or wire to the selling party in exchange for the title to
the property. This is the point at which the borrower finishes the loan process and actually buys the house.
The Loan Process

Pre-qualification occurs before the loan process actually begins, by submitting an application.
The lender gathers information about the income and debts of the borrower and makes a
financial determination about how much house the borrower may be able to afford. Different
loan programs may lead to different values, depending on whether you are qualified for them,
so be sure to get a pre-qualification for each type of program you are suited for.

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