STEP 1Check Rate with us at www.loanfactory.com
You can check the real-time personalized rate quote for your loan scenario at our home page https://www.loanfactory.com. The result shows the low rates from all of the lenders we are doing business with that match your loan scenario.
STEP 2Complete the Loan Application
It is best if you can fill out the loan application online. Alternatively, you can come to one of our offices so that we can help you fill out the application and process the paperwork.
We will assign you to one of our experienced loan processors to process your loan. The loan processor will explain and guide you through the entire loan process.
STEP 3Lock Interest Rate / Cost
Once you send us all the required documents, we can lock in the interest rate. We will set up an alert to email or text you updates about rate/costs AS SOON AS the rates change. If the rate/costs meet your requirements, you can call us and we will lock in the rate for you.
We will not lock your rate without your permission and authorization. After locking the rate, we will always send you an email confirmation stating the details of your locked rate and if there is any cost or any cash-back associated with the locked rate.
Generally, the lender will lock the rate for 30-days. Within this time-frame, we must close the loan or we will lose the rate lock. Some lenders allow extensions for 5 days, 10 days, 15 days, etc. but there are associated costs. Some other lenders do not allow extensions and we may lose this rate lock. These lenders normally have a "Worst Case" Policy. That is, if market rates are the same or better than the locked rate, we get to keep our rate lock. However, if market rates are worse than the locked rate, we must relock at the current market rate. Time is of the essence and we should not let the locked rate expire.
STEP 4Order Appraisal Report
An appraisal report must be obtained so that the lender can confirm the value of the property.
The cost of the appraisal report is typically about $500. We will require your credit card information or a check so that we can order the appraisal report for you. If the loan is locked with no points or costs, the lender will credit you a sufficient amount to cover all closing costs including the appraisal fee.
Please note that this appraisal fee is non-refundable. If the appraiser has not yet come to your property, you can cancel and get a full refund. However, there is a $75 charge for the appraisal trip if the appraiser has already viewed your property and you cancel the appraisal order. If the appraisal report has been completed, you will lose this appraisal fee if the loan cannot be funded for ANY REASON.
If your house is in an uninhabitable condition, the lender will not approve the loan. Lenders also require that the property has smoke and carbon monoxide detectors installed as required by law.
STEP 5Processing Your Loan
It generally takes one to three days for the lender to render a decision whether to approve your loan. Your loan may be denied or suspended if you are not qualified. Otherwise, the lender will conditionally approve your loan. The lender will have a set of conditions that must be met before they will issue the final approval.
Please submit any requested documents to us immediately so that we can clear these conditions ASAP. The required documents should be submitted to us within one to two days. Please RUSH.
STEP 6Signing The Loan Documents
Once all of the Prior-To-Doc conditions have been cleared, the lender will review all the loan documents one more time to make sure nothing is missing. We, the broker, will order the loan documents. We should have the loan documents to sign within two days of the request.
The loan documents are then sent to the notary/closing agent for you to sign. The escrow office will contact you to schedule a time to sign the loan documents. After the loan documents have been executed, they will be returned to the lender.
When you sign the Final Loan Documents, please be consistent with your signature, do not cross-out anything, do not make changes, and do not alter the date.
STEP 7Funding and Closing Your Loan
After the lender has reviewed and approved the signed documents, the lender will contact your employer to verify your employment. Once the verification of employment is done, the lender will wire the funds to the title company, who will then disburse the funds and record the paperwork with the county. At this point, your loan is considered closed.