The Process
| Steps |
Responsible Party |
Details |
| Review our loan information | Applicant | Before you begin an application, please reviewing loan information from our website or fill out any of our short and simple questionaires: |
| Apply | Applicant | Complete an application. This will set the process in motion. |
| Loan Originator Contact by Phone | United Funding Mortgage Corp. | Your first connection with your loan originator will get a dialogue started which will insure that you get the loan that you want. |
| Credit Check & Prequalification | United Funding Mortgage Corp. | We pre-approve you using our artificial intelligence software, or underwriting your loan in-house. Our system will assess your credit, income and assets to quickly determine what loan(s) you qualify for. |
| Required Loan Documentation and Paperwork | Applicant/United Funding Mortgage Corp. | Paperwork is still a big part of the loan process. We will mail, fax or e-mail you forms to sign and a document checklist of what we may need to expedite your loan process. |
| Rate Lock & Appraisal | Applicant/United Funding Mortgage Corp. | Once we determine your loan amount, type of loan and rate, your loan officer will recommend the appropriate time to lock the rate with United Funding. Your loan officer will also determine whether or not to proceed with ordering your appraisal. |
| Loan Submission for the Best Rate/Program | United Funding Mortgage Corp. | Once all of the paperwork is assembled by your loan officer, your package will be forwarded to our underwriting department for approval. The applicant is to obtain a new homeowner's insurance policy on a purchase transaction or on refinances provide an insurance policy with an expiration date of no less than 90 days from the closing date. |
| Underwriting and Pre-Approval/Approval | United Funding Mortgage Corp. | Our underwriting department will review your loan application package and issue a loan decision and any conditions necessary for the approval. Most conditions are taken care of by United Funding Mortgage Corp. |
| Clear Loan Conditions | Applicant/United Funding Mortgage Corp. | Your loan processor will contact you for these items and submits them to the underwriter for a clearance and a final loan decision. Your loan processor may also need to obtain information from your employer(s), creditor(s) & financial institution(s) to verify information disclosed by you at the time of application. |
| Loan Documents Delivered | United Funding Mortgage Corp./Closing Agent | Loan documents are prepared and delivered to the escrow agent by our closing department. Your loan processor will call you to arrange a time convenient for both you, your realtor, your builder and closing agent. This is sometimes coordinated by your loan originator, your Realtor or the loan closing agent. |
| Loan Funding | Closing Agent/United Funding Mortgage Corp. | Once the signed documents are returned, they will be reviewed. The loan closing agent will request a wire transfer of the loan funds, close and record the transaction. Remember, on owner occupied refinance loans you will go through a 72 hour rescission period and disburse on midnight of the third business day which is when your loan funds will be available. |
The Loan Application Process
We will want to verify certain information about you and the property. Borrower information will include verification of income and employment, assets, and your credit history. You, the applicant, as part of your application process, will usually provide some of this information. Other information, such as your credit history, will be obtained directly from the credit bureaus.
For the property itself, we will order an appraisal in most cases and a legal description of the property, such as a title report. We have 'approved appraisal company" lists, so if you have an old appraisal, we may be able to accept it.
The Loan Approval Process
During the "processing" and/or "underwriting" period, your credit, assets, income and other determinants are checked and compiled. Your loan is either approved with conditions, or approved without conditions or declined. Conditions are further documentation or checks we will need to finalize your loan before funds can be dispersed. Some borrowers become frustrated by conditions that surface at the end of a loan transaction and can't understand why they are being raised so late. Final conditions are sometimes added for final approval. We do our best to help you through the process - remember, we are simply trying to meet conditions imposed by other sources.
Since most loans are sold and serviced by other parties, the lender must verify that the loan can be sold upon close. Not to worry, no other terms of your loan can be changed after you have signed your final loan documents. When all conditions are met, your loan documents are drawn up and forwarded to the place of settlement or closing, typically a title and/or escrow company.
IMPORTANT NOTE:
Do not make any adverse changes to your financial "picture" during the loan process. Things as simple as applying for a new department store credit card to purchase a new appliance will at least force an explanation to be given and at worst may cause your loan not to fund and the approval to be withdrawn. Many times a final credit report update and additional calls to your employer may be required before funding the loan. Be patient and your loan will flow smoothly.
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