There are a few steps involved in getting a new Las Vegas mortgage approved and funded.
While things may seem a little overwhelming at first, I’ll be communicating with you through the entire process.
1. Mortgage Application -
The mortgage application is where we go over your personal information and mortgage game plan. I can take a quick application over the phone and have you fax over a few conditions, or we can meet in person to go over every thing in detail.
My objective with the mortgage application process is to really find out what your needs are so that we can start putting mortgage options together that fit your long and short term financial goals.
2. Mortgage Loan Commitment Letter -
Once we have been able to run an automated approval online through our Fannie Mae or Freddie Mac channels, I’ll issue a loan commitment letter and send your real estate agent detailed instructions on what price range to stay within.
The difference between a pre-approval and loan commitment letter is that I’ll have a full approval pending underwritten review. While most loan officers stop their qualification process at the credit report, I’ll actually take it those extra few steps and get an official approval letter that will be good with any bank who lends mortgage money.
This prevents us from running into those small glitches that cause anxiety.
3. Purchase Offer is Accepted By Seller -
Sometimes it takes a few tries, but eventually a buyer and seller agree on a final purchase price, closing date, and terms. At that point, we are officially in contract and the due diligence period begins.
I’ll connect with all of the participating parties to get the communication points in sync. The paper chase begins.
4. Open Title and Cash Earnest Money Check -
Your real estate agent will open title with the escrow company specified in the purchase contract and they will cash the earnest money deposit check. This money will be credited towards the buyer’s down payment and/or closing costs.
Obviously, all of that money would be returned to the buyer at closing if there wasn’t a down payment or any closing costs.
5. Home Inspection is Completed -
Generally, the buyer has a 10 day due diligence period to complete the home inspection and preview any HOA documents. Your real estate agent should be handling those details and may include you in the actual inspection process.
6. Loan Officer Orders Appraisal -
I order the appraisal as soon as I receive a fully executed purchase contract. Since we also have about a 10 day due diligence period, it is imparative that I expedite the paper work so that we can overcome any obstacles with regards to property condition or neighborhood values.
Most appraisers require a check up front from the buyer. Average cost is around $350 – $450, depending on the type of loan program.
7. Mortgage Package is Submitted to Underwriting -
Once we have received the title report, escrow paperwork, completed appraisal, and any trailing buyer conditions (pay stubs, bank statements, misc.) I’ll send the final loan package to the bank for final underwritten signatures.
8. Loan Officer Orders Property Insurance -
All that I need from the buyers is the name and phone number of their preferred hazard insurance provider.
Shop around and find someone that you are confident using, we’ll take care of the rest. Depending on the loan program you have chosen, we may have the option of including the insurance with the monthly mortgage payment (Impounded), or you can opt to handle that on your own. FHA and VA loans require that we impound escrow fees, which include property taxes and insurance.
*Monthly HOA dues are always handled by the home owner separately.
9. Buyers Meet at Title to Sign Final Loan Documents -
I’ll meet you at the title company where we can go through all of the final loan documents together. I believe that it is my job as your loan officer to be present and stand behind the rates, fees, and monthly payments that were originally quoted at the time of loan application.
I’ll bring your original Good Faith Estimate to closing and we’ll be able to ensure that you are fully satisfied with the program and closing cost option that you were expecting.
The closing process should only take about an hour.
10. Title Sends Loan Documents Back to Lender -
The lender will make sure they have all of their papers in order and all signatures match up. Sometimes there are minor conditions that need to be addressed, but we try to handle everything ahead of time so that the docs move through funding smoothly.
11. Bank Sends Funds to Title and Deed Is Recorded
Congratulations, you own a new home. The funding and recording process can take between 1 – 4 days from the time final docs are signed at title.
The only hold up would be in the case of a bank owned property (REO) where we are waiting on the seller to approve and sign off on the final settlement statement.
I’ve seen HOA documents, prior liens, and all of the other mess associated with buying a foreclosure hold up files for several weeks. The important thing is that you have a good real estate agent in your corner fighting those issues for you.
Basically, don’t plan on moving in to a new home immediately after signing loan documents if it a foreclosure. Give yourself a little room for flexibility, but I’m sure the discounted price is worth a little wait.
**Mortgage Rate Lock -
Your interest rate just has to be locked before we order final loan documents. I’ll be regularly communicating with you about the state of the market and offering my recommendations.
We want to try and keep the lock time within 30 days, otherwise the rate starts to increase a little. If rates move drastically, I can always renegotiate your rate with the bank. Worse case scenario, we’ll just move lenders and submit a new loan package for approval.
Lets get that application process started today. I can submit a file TBD if you haven’t found a property so we can have all of the initial underwriting and approval steps out of the way.
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Top 5 Las Vegas Mortgage Links / Articles / Questions
- Las Vegas First-Time Home Buyer Frequently Asked Questions
- Las Vegas Mortgage – How Much Can I Borrow?
- What Are The Current Mortgage Interest Rates?
- Applying For A Las Vegas Mortgage – Required Documentation?
- How Does The Mortgage Approval and Funding Process Work?
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Raintree Mortgage (Las Vegas)
9488 West Flamingo Rd. Suite 102
Las Vegas, NV 89147 | NV LIC 2511
702-432-5626 | Email
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