Dear valued customer,

Thank you for choosing me and Mortgage Master to get you through the mortgage loan process. Getting you to the closing table is a team effort. I’m sending this email to help explain the loan process and to ensure that we get through this process effectively and efficiently. I also want to make sure that all the members of my team are on the same page.

Below, you will find a step-by step guide through the loan process.

Application- We will complete the application process in person or by phone. This is simply a matter of data entry. I will obtain the necessary personal information as well as the information about the property you are buying that we need to get you through the loan process. I will ask you for very specific documentation (pay stubs, bank statements etc.).

Once I receive these documents from you, they will be sent, along with the completed loan application to the processing department who will review and underwrite your loan.

Processing- Our processing department will send to you all the legal disclosures we are required by law to send. It will seem like a lot of documents – but rest assured, they are designed to let you know everything you could want to know about this transaction.

Once received, please review, sign and return via fax, email or regular mail. Once the processing department has received all of the information we ask of you and the property appraisal report, they will underwrite the file.

Approval/Commitment- An underwriter reviews your file to make sure that you meet the guidelines for the type of loan you selected. The underwriter can either: 1. approve, 2. deny, or 3. suspend your loan. If your loan is suspended, usually, the underwriter is seeking further clarification.

If the underwriter determines that you meet all the guidelines necessary to obtain the loan you seek, they will issue an approval. If you are purchasing a property, an official commitment letter will be sent out to your attorney at this point. If it is a refinance, I will contact you to let you know that you’ve been officially approved.

Condition Gathering- Almost all loan approvals require additional conditions, or documentation that wasn’t submitted during the initial application and submission process. If you receive a commitment with conditions from Mortgage Master, it means we are committed to providing you with the loan you applied for assuming you provide us with the conditions that the underwriter has set forth.

After the commitment is issued, I will reach out to you to review the conditions of the commitment. I will explain exactly what the underwriter is asking for. We will ask you to send those conditions to us right away so we can quickly gain final loan approval.

Final Approval- After receiving the conditions from you, we will immediately send those conditions back to the processing department. If they are satisfied that we’ve cleared each and every condition, they will send the file to an additional underwriter who will provide a second look. (Every loan must get a second look before receiving final approval). If the second underwriter is satisfied, your loan will receive a final approval with no further conditions.

This process doesn’t happen instantly. Remember, there are other files that the underwriters are working on. But usually it can be done in about 3-4 business days. 

Clear to Close- After receiving final approval, your file will be walked over to the Mortgage Master closing department. Our closing department will send out an official clear to close document to the bank’s closing attorney.

For a purchase transaction, the Mortgage Master attorney usually will contact your attorney to try to schedule a closing date. Of course, I’ll deliver the good news to you myself.

If it’s a refinance, I will let you know that the loan is clear to close and put you in touch with our attorney so you can schedule a closing date that makes sense to you.

DISCLOSURES

We'll be mailing or emailing out official "truth-in-lending" disclosures.  The disclosures show the purchase price, loan amount, and interest rate based on your application. The rate of interest used is a qualifying rate.  Please contact me for specific lock options on your loan if you have not already requested to be locked in. 

The disclosures will also include a good faith estimate of closing costs so that you will have know what type of costs you can anticipate on closing day. If you have any questions about any of these documents call me immediately.

Please fax or mail to me any missing items we discussed. Remember, the faster we receive the documents we request, the faster we can get you through the loan process.

Thank you very much,

Matt and Matt