Officials from Santa Clarita mortgage lender American Family Funding describe the necessary steps involved in going from loan application to escrow.
Although the process of applying for a home loan may seem complicated, officials with Santa Clarita mortgage lender American Family Funding have broken the process down into easy to understand steps.
“The first step in obtaining home loan financing is to fill out a loan application,” officials with the Santa Clarita mortgage lender said.
Those seeking a home loan must file “Fannie Mae 1003” or “Uniform Residential Loan Application” forms as part of the loan application process. After this initial submission, loan officers with American Family Funding “will make an appointment to meet with you in person or over the phone to help obtain any necessary personal and financial information needed to initiate the loan process.”
Clients will then work with American Family Funding loan officers to find the best loan option available.
“We will also discuss different loan programs that can meet your needs, the interest rates available and the financial and property qualifications for the loan program you have chosen,” officials from the Santa Clarita mortgage lender explained.
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After deciding on a loan, the next step is for the client to verify the information on previously submitted documents. This is accomplished by filing additional forms to verify bank account information and employment history. Additionally, credit reports must be obtained, and both the preliminary title from the title company and appraisal must be acquired.
“Once we have gathered all the necessary information, we will compile your loan documents and submit them to the underwriter for final approval,” American Family Funding officials said.
Once all of these steps are finished, the loan may be approved.
“Your loan may be approved as submitted, approved with conditions, or a counter-offer may be made for your consideration,” officials explained. “If there are conditions on the loan in order for it to be approved as submitted, we will work with you to satisfy these conditions.”
The conditions for approval usually consist of filing additional documentation to explain any unusual situations or irregularities that may apply to a client’s initial filing, such as “an explanation letter, copies of investment documents, copies of divorce papers, or any number of items that may help clarify your qualifications for the loan.”
After the loan has fully been approved, the lender “will draw up the necessary documents along with any (prior-to-funding) conditions that have yet to be met,” officials from the Santa Clarita mortgage lender explained. “In most cases, (the lender will) send (these documents) to a title or escrow company near where you live or your attorney to be signed by you.”
Finally, the loan process will be closed, usually by the attorney, escrow officer or lender.
“This person or company is responsible for gathering all of the necessary documents (deed of trust, promissory note, etc.) and making sure all documents are signed,” said American Family Funding officials. “Following the lender’s instructions, the escrow officer, attorney or lender then calculates the various prorations, charges, and adjustments, … makes sure all of the funds are deposited (if any), and provides you with a settlement statement showing all of the costs involved in the loan.”
This same company or person will additionally ensure all parties are paid accordingly once the loan is processed. After this, the loan will close escrow and the new loan “will be recorded,” officials said.
The loan process may vary depending on where the filer lives, but this is the general process for acquiring a home loan, officials from the Santa Clarita mortgage lender reported.
Interested parties can find out more by visiting the American Family Funding website or by calling directly at (661) 284-1150.
Santa Clarita mortgages lender American Family Funding can help you fulfill your dream of home ownership. A highly rated Santa Clarita mortgages lender, American Family Funding maintains a focus on community involvement and a commitment to giving back whenever possible. A friendly mortgage advisor will make the first time homebuyer experience an easy and stress-free experience — even with bad credit or a low down payment. The Santa Clarita home loan officers at American Family Funding also specialize in VA loans, reverse mortgages, refinancing and the STAR Loan Program.