Step 6: Processing/Closing Your Loan

What Goes on at Our End

After you submit the property information for approval, we'll order your title and appraisal.

A qualified appraiser will look over the property and submit a report to us. This lets us determine if the home is worth enough to support your loan.

A final underwriting will take place that involves analyzing the appraisal report and your ability to repay the loan to determine our risk as a lender.

Once your loan has been approved, the next step is to decide whether you will lock your rate with your loan officer. Locking in your rate ensures that your interest rate won't increase before you close your loan. Rate lock options include 30, 45, or 60 days. However, locking may not be the right choice for you, so we should look at your options so you can make the best decision.

I will contact you to schedule a closing date. Closing is not very complicated, but you'll need to understand the various steps and fees involved with the process. Your Loan Officer will go over the closing cost / settlement statement with you prior to closing.

At closing you will finalize your loan by signing your note and Deed of Trust
 

Deed of Trust or Mortgage (also known as the Security Instrument)
These documents convey a lien in your property as security for repayment of your home loan. (This means that if you default on your loan, your lender has the right to foreclose your ownership interest and take possession of the property.)

The Note
The mortgage (or promissory) note represents your promise to pay the lender according to the agreed terms. It includes the dates on which your home loan payments must be made and the location to which payments must be sent.