The Loan Process

WHIPPLE FINANCIAL SERVICES, LLC has streamlined the loan process by using automated underwriting technology combined with expert personal service. The loan process is very simple, and is accomplished by following a series of steps.

Prequalification
"Prequalification" occurs before the loan process actually begins, and is usually the first step after initial contact is made. In a prequalification, 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 prequalification for each type of program you are suited for.

Application
The "application" is actually the beginning of the loan process and usually occurs between days one and five of the loan. The buyer, sometimes also referred to as a "borrower" or "applicant", 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 which itemizes the rates and associated costs for obtaining the loan.

Opening The File
This usually occurs between days 3 and 10. At this time the lender orders a property appraisal, property survey and credit reports, mails out requests for verifications, if necessary, for employment (VOE) and bank deposits (VOD) and any other documents needed for processing of the loan. All information supplied by the borrower is reviewed at this time and a list of items not yet received is compiled.

Processing
Processing usually occurs between days 5 and 25 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 judgement, 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.

Underwriting
"Lender underwriting" usually occurs between days 15 and 25. The underwriter is responsible for determining whether the combined package passed over by the processor meets all the lender's crieria. If more information is needed, the loan is put into "suspense" and the borrower is contacted to supply more documentation. "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
"Pre-Closing" usually occurs between days 20 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
Closing usually occurs between days 30 and 45 of the loan. 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.
For purchases you must bring a certified cashiers check to closing. The check should be payable to the title company handling your transaction. Bring your homeowners policy and any other information related to the transaction. Be prepared to spend at least one hour at the closing. You will be signing many documents and disclosures. Your loan officer will arrange to meet you at your closing if you wish to have him or her there.

CONGRATULATIONS!
After closing, you will be given the keys to your new home.

Our Customer Care Representatives will help you with a Mortgage, refinancing your Mortgage, acquiring a Home Equity Loan/Line, or finding a REALTOR®.