The Loan Process at Tomasso Mortgage
Although we will simplify the loan process for you, getting a mortgage is not as simple as it used to be. In addition to educating our Borrowers and Realtors about what to expect during the transaction, guidelines, and the requirements of getting a mortgage, we will assist in gathering the appropriate items for underwriting. Having the correct documentation in the file is critical for the transaction to go smoothly and to having a successful closing.
We start with a comprehensive pre-approval. This is when we get the fundamental information regarding your financial picture and learn what you are anticipating during the loan process. At this time, we will also request supporting documentation to verify the details that you have shared with us.
Now pre-approved, you can work with your Realtor to find a home that meets your criteria and price range. Having a strong pre-approval letter from a reputable local company like Tomasso Mortgage will help you get a home under contract.
Once you have a property under contract, we will request any updated documents needed from you as well as ordering the appraisal, title insurance, survey, and obtaining evidence of homeowner’s and/or flood insurance. After we have compiled everything, we will submit your loan to underwriting for our final approval.
When we receive a clear to close from underwriting, we will schedule your closing documents to be sent to the title company to accommodate the closing date per your contract. A new requirement as of October, 2015 is that a Closing Discloser (CD) is prepared and signed by the borrower at least 3 business days proper to closing. This allows you time to review your closing figures well ahead of the closing so any questions can be addressed prior to sitting at the closing table. Once you have signed all of the closing documents, the title company will email the signed forms to the closing department so that a funding authorization can be issued. This is done so the lender can verify that the title company has followed the closing instructions that were provided with the loan documents.
If you are doing a refinance of an owner occupied property, there is a mandatory three-day right of rescission. This means that there is another three-day waiting period before your loan “funds”, so if you were pulling cash out from the refinance, it would not be available until that three-day period has expired.