The Loan Process

The descriptions below will give you a general idea of what is required to go through the complete loan process.

The first step - the Loan Application:
The first step to obtaining a home loan is filling out the loan application (also called a "1003", or "Uniform Residential Loan Application"). A MPI Loan Consultant will be happy to assist you in filling out the loan application if you should have any questions or need assistance during the process. We can also make an appointment to sit down and meet with you at your convenience if you desire. Whether you choose to meet with us, fill out an application yourself, or fill out our online application, you will need to provide us with some personal and financial information prior to the final closing of your loan.

It is possible to complete the loan process without attending a meeting in our office. This can be accomplished by using one of the following three options:

After the Application...what then?
Once you have decided on a loan program and interest rate, the application has been filled out and you have provided us with the necessary information, we will then send out forms to verify your employment history and will gather bank statements and paystubs from you. We will also run a credit report, order your preliminary title report from the title company and order your appraisal and a termite inspection if required. Once this information has been gathered, we will compile your loan documents and submit them to the underwriter for final approval.

"You are approved...on these conditions"
Your loan may be approved as submitted or approved with conditions. If there are conditions on the loan in order for it to be approved as submitted, we will work hand in hand with you to satisfy these conditions. Conditions might include an explanation letter of some sort, copies of investment documents, copies of divorce papers, copies of Bankruptcy papers, or other items that may help clarify your qualifications to the lender.

After the loan conditions are met (if any) and the loan is approved, the necessary documents are prepared for closing. The lender will draw up the necessary documents along with any (prior-to-funding) conditions that have yet to be met, and in most cases send them to an escrow company to be signed by you. Your escrow officer will arrange an appointment for a notary public to meet with you, either at your home or at our office, when the loan papers are ready to be signed.

Closing Escrow
Closing the loan is normally the responsibility of the escrow officer or lender. This person or company is responsible for gathering together all of the necessary documents (deed of trust, promissory note, etc.) and making sure all documents are signed. Following the lenders instructions, the escrow officer then calculates all of the prorations, charges and adjustments (payoff on your old loan, interest on your new loan, money for impound accounts for taxes and insurance, amount of cash back to you, etc.) and makes sure all of the funds are deposited (if any) and provides you with a settlement statement showing all of the costs involved in the loan. The escrow officer will then make sure that all of the parties involved in the loan process are paid after the loan funds. Once your loan funds, your new loan will be recorded.

What is a "Right of Rescision?" (Refinances only)
On a refinance, there is a 3-day right of rescission period. What this means is you have 3 days from the day you sign the papers to change your mind regarding whether you want to complete the loan process. If you have not exercised your right to rescind during the 3-day right of rescission period, the lender releases the funds.