The Life Of A Mortgage

Pre qualification: Phone or face-to-face interview with the borrower to determine their eligibility for a mortgage.

• Application:
Loan Officer takes mortgage application and potentially issues a GFE to the borrower.

Borrower signs all disclosures, hands in documents and gives a check for the appraisal, credit and application.

Loan Officer makes sure that a program is chosen and those investor guidelines are met before handing in the file.

Loan Officer packages file within 24-48 hours and hands it into processing with a cover letter highlighting the key issues. It is very important that you give the processor an approximate time frame that the borrower is expecting to close, so they can prioritize their pipeline.

Before the file is locked-in, at application or during the process, the Loan Officer checks with operations to make sure that the file is in a position to close within the lock period. This includes speaking with Processing, Underwriting and Closing
Processing:

Files usually take from 10 to 30 days in processing.
Files are uploaded onto the mortgage software, appraisal is ordered, and the GFE & TIL are issued within 24-48 hours of submission.

Appraisal usually takes 5-15 days to be completed.
Missing information letter (MIL) is sent to the borrower requesting the remainder of needed documents.

If the file is automatically underwritten, a commitment maybe issued with outstanding conditions in lieu of the MIL.

Once the file is complete, the processor will send file out for approval or give to an in-house underwriter. You must be aware of the turn-around times for approval if the file is being sent out. When times are busy, some Mortgage Brokers have to wait 2 weeks for a commitment from an investor.

• Underwriting:
Files in underwriting usually take from 1-10 days in underwriting.

A commitment or denial is issued and forwarded to the borrower. Contained in this commitment are conditions that need to be met prior to closing and at closing. The items range from current pay-stubs to hazard insurance.

When a commitment is issued, it does not mean the file is ready to close. Until all conditions are met, you will not have credit clearance. In addition, all closing issues must be met before a date and time can be arranged.

• Closing:
No exact time frame is listed as the closing process can begin as early as when the file is submitted into processing or as late as when the commitment is issued. A lot depends upon who is taking responsibility for closing issues, like ordering title, and if there are Attorneys involved in the transaction.