How Does The Loan Process Work - The very first step in the loan process is to get pre-qualified. This is very easy to do and can be done from the comfort of your own home. In the pre-qulification your mortgage broker will pull credit and ask questions pertaining to your income and mortgage/rental history. With this information the mortgage broker will be able to give you an idea of the programs that might be available for your situation and credit rating.

While the bank underwriter examines the loan application package, your mortgage broker would order title search on the subject home, if this has not already been done at an earlier stage. The title search process typically takes several days. When the title abstract becomes available, your mortgage broker reviews it to ensure the property is free of title defects and unexpected liens, then forwards the title report to the lending bank's closing agent. In states where the title agent is also the closing agent, this step is eliminated. With a clean title report, the title company issues a title insurance policy at settlement.

Once you have signed all of the required documents and provided the necessary income & asset documentation(if needed) your mortgage broker will submit this info to the loan underwriter. At this time an appraisal may be done on the property being financed.

Be patient, sometimes someone loan will go really smooth. Other times it takes a little longer. The key is that sometimes it does take time.

Once the underwriter has looked at all of the paperwork sent in with the initial package, he or she will issue what is called a conditional approval. The loan officer or loan processor will contact the borrower, borrowers employer or bank to acquire any additional documentation requested by the underwriter. This paperwork will then be sent back to the underwriter for him or her to sign off on the conditions.

It usually takes a lender between 1-6 weeks to complete the evaluation of your application. It's not unusual for the mortgage lender to ask for more information once the application has been submitted. The sooner you can provide the information, the faster your application will be processed. Once all the information has been verified, the lender will call you to let you know the outcome of your application. If the loan is approved, a closing date is set up and the lender will review the closing process with you. And after closing, you'll be able to move into your new home.

After deciding on the loan program that's right for you, complete the Uniform Residential Loan Application with the help of your loan officer. To complete the loan package, you will be asked to sign all the necessary federal and state disclosure forms, and to supply all the income and asset supporting documents, such as pay-stubs and bank statements, if they pertain to your chosen loan type.