Loan process
The traditional mortgage process is confusing and stressful. We’re changing that by getting rid of commission and letting you do it all online.
Step 1 - Pre-qualification
- You send in essential documents so we can determine how much you can qualify for
- Together we determine a suitable loan program and loan structure
- We issue pre-approval to your realtor and you (can take as short as 24-48 hours depending on complexity of your scenario)
Step 2 - Submission
- We lock in the interest rate with your consent
- Lender uses the interest rate to issue a loan estimate (LE) within 3 days with a breakdown of estimated closing costs
- You sign and acknowledge the LE (required by government for us to move forward)
- We order the appraisal and prepare the application package and disclosures for you to sign
- You sign loan application and disclosures
- We submit your loan to the lender
Step 3 - Conditions Cleared
- Lender will review and sign-off conditions in a few days (note: lender may counter with further conditions upon review)
- Once all conditions are cleared, a final loan approval is released
Step 4 - Loan Approval
- Lender issues conditional loan approval with a list of conditions to be fulfilled
- We review the conditions with you
- You provide all requested conditions within 24-48 hours, and have a conversation with your realtor about contingencies
- You get a quote for homeowner’s insurance and send the declaration page to us
- The lender issues a closing disclosure (CD) similar to the LE for you to review closing costs
- You sign and acknowledge the CD. This starts a three-day waiting period before final loan documents can be signed.
Step 5 - Sign Loan Documents
- Lender sends loan documents to the title/escrow company, and title/escrow prepares loan documents for signing
- We review the estimated closing statement & note with you and make sure all numbers are correct before signing
- Title/escrow company sets up signing appointment with you
- You sign the legal documents at the title/escrow appointment
Step 6 - Funding and Recording
- Lender may request funding conditions
- You send in funding conditions (if any), and wire the down payment to the title/escrow company
- Lender funds the loan, and title/escrow records the loan next day
Which Loan Is Right For Me?
Fixed Mortgage Rates
+ ADVANTAGES
- Monthly payments are fixed over the life of the loan
- Interest rate does not change
- Protected if rates go up
- Can refinance if rates go down
- DISADVANTAGES
- Higher interest rate
- Higher mortgage payments
- Rate does not drop if interest rates improve
Adjustable Rate Mortgages
+ ADVANTAGES
- Lower initial monthly payment
- Lower payment over a shorter period of time
- Rates and payments may go down if rates improve
- May qualify for higher renovation home loans amounts
- DISADVANTAGES
- More risk
- Payments may change over time
- Potential for high payments if rates go up