What is the Loan Process?

Pre-qualification

Pre-qualification occurs before the loan process actually begins. We will gather information about your income, assets, debts, and pull your credit report.  The pre-qualification process helps you decide whether refinancing is a good idea for you. At Wain Capital we are here to be Your Mortgage Advisor. We want to know your immediate goals and your future financial goals. Knowing these help us determine what product and lender is best for your scenario.  

Mortgage Application

Typically a mortgage application is done by you, the borrower, online. However, at Wain Capital we know your time is valuable so we make life easier and build the file/ application once we have received a list of documentation and your approval to pull credit. As your Loan Officer and Mortgage Broker we will discuss various loan products available, different lenders and all cost & rate options that make sense for your scenario. Once we determine the ideal pricing and lender, the application is complete and we will send a full set of disclosures including the LE (Loan Estimate) to you.  These can be viewed and signed electronically. The LE replaced the GFE (Good Faith Estimate) and breaks down all costs and terms of the loan.  The LE can be a little confusing, so we will gladly walk you through it. It is also important to remember it is just an estimate, so the numbers can vary but it paints the most accurate picture of what to expect. 

Interest Rates - When to Lock

The market these days can be somewhat volatile, especially since Covid-19. Pricing can change throughout the day or a few times a week. It is important to remember shopping for the best rate can sometimes cause you to miss the best rate. When lenders and banks change their pricing before you have agreed to lock you then decide to lock the newest rate or "float" with hopes that the better rate comes back.  

Underwriting

The lender's underwriter is responsible for determining whether the application package prepared by the processor meets all the lender's criteria. 

If the underwriter approves the loan, the lender issues a conditional commitment to approve your loan and works with you to clear all conditions to its commitment to lend, and then schedules a closing time. Conditions to the lender's commitment may include issues with credit, income, or the property that may arise during the processing and underwriting process. 

Closing

The closing of your loan will occur after all conditions are cleared and the lender issues a full loan approval. At the closing, the lender "funds" the loan and a title/escrow agent will disburses funds, in exchange for the title transfer to the property. This is the point at which you finish the loan process and actually refinance or buy the house, subject to the lender's loan. Depending on the transaction, closings can occur at the title company or with a mobile notary at your place of choosing.