An overview of the loan process - Loan One Mortgage Co., Inc.

The Loan Process

There are five steps in the loan process. There are no shortcuts and, yes, there will be plenty of paperwork. Finding the right mortgage requires the right amount of planning. Fortunately, we’ll see to the details leaving you free to find the home of your dreams. At Loan One, our job is to make yours easier.

There are four main steps involved in getting a loan. You'll see that we've made your part in them as easy as possible, and we do all the work! That's what we're here for.

Step one: Understanding you

When you call, we’ll ask questions. It’s impossible to know the loan you need without knowing your goals. We seek total clarification. Homebuyers will ask us, “What’s your rate?” That’s the wrong question. As homebuyers, we’ve been taught to believe the lowest rate is always the best deal. It’s not. We’ll challenge your thinking to make sure you’re approaching your loan the right way.

Step two: Pre-qualification

We’ll ask basic questions about your employment, income and loan history. We’ll also ask permission to run a credit report. Within 24 hours – and in some cases, the same day – we’ll respond with details of the loan and amount you qualify for. At this point we can also talk about any Down Payment Assistance Programs that might be beneficial to you.

Step three: Pre-approval

It’s time to complete your loan application by producing the necessary personal documents – for example, your W-2s (past two years) and pay stubs (past month). In fact, this is your chance to speed up the loan process by having your papers ready. For good measure, include copies of your bank, stock and mutual fund account statements for the past three months. Before you shop for a home, complete these three steps to receive your pre-approval letter. This tells a seller you’re eligible to borrow, which gives you buying leverage.

Step four: Final approval

We’ll be hard at work to obtain a title search and commitment for the loan and to secure an appraisal for the home. Our underwriter will validate all information presented in the loan application, calculate your income according to standard practice and evaluate your home appraisal. Once complete, we’ll contact you with the good news – “You’re clear to close!” Your loan officer – the same person you’ve worked closely with all along – will review your rate and payment details with you, then prep you for the closing.

Step five: Closing

We’ll schedule a time and location that’s convenient for you to sign the loan documentation. You’ll need to bring identification and proof of homeowner’s insurance as well as a cashier’s check for the down payment and closing costs, if required. Once everything is in order, the loan is funded and final disbursements are made. Most importantly, congratulations on your new home!