We discussed shopping for a home, how to pick a real estate professional and the pre-approval process.  Today, we are going to speak about the loan process and why it could take a full 30 days for you to own your home.

Let's assume you have an agreement of sale signed and dated.  The next thing you need to do is contact the loan officer at Allied Mortgage Group.   We will ask you to update all your information that you provided us for the pre-approval. Besides the updatd information, we will need a copy of the canceled checks (front & back) you gave for the earnest funds (deposit) when you signed the agreement of sale.  We will update the information on the application and meet with you in person to sign the loan application and all the disclosures.   The processor at Allied Mortgage Group will order the appraisal for the property and inform the title company we are the mortgage lender handling the financing.  Once we have all the documents in the file that is needed, the file is sent electronically to the underwriting department.  The head underwriter assigns the file to a underwriter.  The underwriter is responsible to make sure the loan abides by the laws and guidelines issued by several entities.  These entities are Fannie Mae and Freddie Mac, VA, Federal Housing Agency (HUD), and the wall street investors. 

The underwriter gives a conditional approval and issues the mortgage commitment letter.  On the mortgage commitment letter the underwriter issues additional conditions of what you, the borrower, is 1. either missing or 2. needs additional information in order to fully approve the loan. The conditions are, what we call, the laundry list of items.  Once you obtain everything that is asked for it can take anywhere from 24-48 hrs for the underwriter to approve the conditions.  Sometimes, the underwriter sees conditions and it may evoke more conditions or questions concerning what he or she has in front of them.  Many times it is a simple explanation, whereas, it can wreak havoc on the entire loan process and the mortgage denied.  In this case scenario we are perfect.  The underwriter likes the loan and approves it. 

The loan now approved is sent to the closing department.  The closing department issues the closing documents which is given to the title company.  The title company must send to the closing department a preliminary HUD 1 or Settlement statement.  This statement breaks down the entire charges for both seller and buyer.  Of course we are merely interested in the buyers side of the transaction.  Once the preliminary HUD is approved the closing department sends the closing instructions and documents to the title company.  The closing department electronically sends the funds to the title companies bank account. 

Now we are at the table and all papers are signed and the title clerk says "Congratulations". You are given the keys to the house.  Your Allied Mortgage Loan Officer congratulates you and puts all your mortgage papers in nice folder. 

I hope this answers all your questions. Visit our web site www.loansbyallied.com