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 An overview of the loan process
Make no mistake, there's a lot involved in getting a mortgage loan. You wouldn't be here on our website if you could fill out a one-page application and get the best loan for you funded the same day. What we do is do most of the heavy lifting for you, so you can concentrate on what's important -- preparing to move into your new home, saving money, or making plans for your home equity check.
We've designed our site to make it easy for you. This brief diagram will give you a good jump-start!
| Event |
Who Does It |
Details |
| Review our loan information |
Applicant |
Before you begin an application, please review loan information from:
|
| Apply |
Applicant |
Complete an application. This will set the process in motion. |
| Loan Originator Contact by Phone |
Loan Originator |
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 |
Loan Originator |
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 |
Loan Originator |
Paperwork is still a big part of the loan process. We will email you forms to digitally sign and a document checklist. Return them promptly to ensure timely processing of you request. You may even upload them to our secure site using the upload option in the managing docs folder. |
| Rate Lock, Title Work & Appraisal |
Loan Originator |
Once we determine your loan amount, type of loan and rate, your loan agent will recommend the appropriate time to lock the rate. At this time we will request payment for the appraisal and we will order the title work from the title company selected in the purchase contract (refinance transaction- title company will be suggested for you from our preferred vendor list). Turn times to receive the appraisal and title work is normally 3-7 business days |
| Loan Submission for the Best Rate/Program |
Loan Originator/ Processing Team |
Once all of the paperwork is assembled by our processors, your package will be forwarded to underwriting for approval. |
| Underwriting and Approval |
Loan Originator/ Processing Team |
An underwriter will review the package and send an approval to the processor/loan officer with any conditions necessary for the approval. The turn time for this step is roughly 24-72 hours.
If additional items (conditions) are required by the underwriter your prompt response is required to facilitate your timely closing. Review and approval of these conditions once provided to the underwriters will take roughly 24-72 hours. |
| Clear Loan Conditions |
Loan Originator/ Processing Team |
If additional items (conditions) are required by the underwriter your prompt response is required to facilitate your timely closing. Review and approval of these conditions once provided to the underwriters will take roughly 24-72 hours. |
| Loan Documents Delivered |
Closing Documents |
Loan documents are prepared and delivered to the escrow agent. The escrow agent will call you to arrange a signing date and time. This is coordinated by your loan originator, your Realtor and the escrow agent.
Delivery of your loan document to the escrow agent normally requires 24-72 hours for preparation and approval of the HUD Settlement. Once the Settlement statement is approved your loan funds are wired to the escrow agent. |
| Loan Funding |
Escrow Agent /Lender |
Once the signed documents are returned, they will be reviewed. Envoy Mortgage will allow the escrow agent to fund your loan as long as they have followed all our instructions. |
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.
You've answered a few questions, given us some detailed information, applied online, and next thing you know, you're moving in! We're in the business of mortgage loans, you're not -- so we do most of the work. Doesn't that make sense?
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