Getting qualified for a loan and knowing what you qualify for before you start the home shopping process is very important. We take a proactive approach in all we do, one of the ways we do this is by preparing our CLS Ultimate Loan Approval Package; a full bank underwritten approval before a property is even found. This helps you stand out from the competition and put your offer above the rest and gives you the assurance you need during the home shopping process.
To start the qualification process, CLS will complete a loan application, run credit and send you a series of emails to include a list of requested documents needed, credit report, e-consent to be signed and an educational video to provide tips during this stage. Once we receive your documents, we will review and verify the information to solidify your loan qualification. Our next step is to prepare initial pricing options with interest rate, payment and estimated total investment to close and confirm you are comfortable with these scenarios.
At CLS, it is important to schedule a meeting so we can carefully listen to where you have been, where you are today and where you want to go. During this meeting, we will review everything we sent and provide the right solutions to help you reach your goals and meet your specific needs. Together, we will explore your home loan options, along with the steps you need to get qualified for a loan. We find every way to go above and beyond; providing our time and the expertise needed to set you up for full financial success and peace of mind during your mortgage planning.
Once you start home shopping, make sure you have your CLS loan qualification package to present with your offer. As you are finding properties of interest, please reach out to your Close Loan Specialist to confirm payment options and qualifications specific to the properties. When you’ve established a property that fits your needs and plan to write an offer, please contact CLS and we will reach out to the listing agent to express the strength of your qualification. You will work closely with your real estate agent to structure and present the offer; then review any and all counter offers to finalize an accepted offer. In the meantime, continue to send CLS updated documents to keep your file current, so there will be no delay in submitting your loan.
Now that the offer’s accepted, escrow will open and your earnest money deposit (EMD) will need to be sent to escrow immediately. You will receive your initial loan disclosures via email that needs to be e-signed as soon as possible. Make sure your file is current by sending CLS any updated income or assets, so we can prepare your submission and receive final loan approval. We will keep you updated daily on pricing for you to review and confirm if you are ready to lock in the interest rate. CLS suggests shopping for your home owners insurance in the beginning of the process, as some companies require additional inspections to issue a policy binder. Please provide your preferred fire and hazard (homeowners) insurance quote within the first week that escrow opens and continue to keep your documents updated throughout this process. Once everything is in place, you will receive escrow instructions that need to be completed and signed, then sent back to escrow right away.
Lenders require fire and hazard (homeowners) insurance on the replacement value of the structure. Flood insurance will also be required if the property is located in a flood zone. In some areas, additional coverage such as earthquake insurance may be required. An appraisal will also be required to determine the value of the property, and protect you from overpaying. The value of the property should match the purchase price or higher. The appraisal will be ordered from a third party appraisal management company and you may be sent a link for payment. Once the value of the appraisal is in at the contract price and signed off by the underwriter, you can remove your appraisal contingency.
Property inspections are typically ordered by your real estate agent at your cost to protect you from potential hidden issues that can be expensive to correct. After the inspection, you will review and sign the real estate disclosures with your real estate agent and determine any repair requests. Your agent will then send any repair requests to the listing agent to get completed before close of escrow. Once you are comfortable with the condition of the property and any repairs needed, you will remove your inspection contingency.
Once we receive final loan approval from the underwriter, we will contact you with any outstanding conditions to clear your file for loan documents and fund your loan. We will also discuss the removal of your loan and appraisal contingencies, typically within 17 – 21 days from the date from escrow opened or from contract date. This is also an important time to start collecting gifted funds, or begin withdrawal of retirement funds if needed for closing. Send any outstanding conditions to C:S to resubmit for underwriter to provide clear to close.
Once all outstanding conditions from you and escrow have been received and signed off, we will email you your Closing Disclosure to review and sign. The date of signature begins the three day waiting period for you to be eligible to sign your loan documents.
The loan documents will be sent to escrow; any supplemental taxes will need to be verified. Escrow will then contact you to schedule a signing appointment. Once the appointment is scheduled, please contact CLS, so that we can be available to answer any questions during your signing..You will receive an estimated closing statement which will include your estimated funds needed to close. The funds need to be wired to escrow following the signing; wiring instructions will be provided by escrow. Please look out for a copy of your first payment letter enclosed with your loan documents. This is always a good time to do the final walk-through of the property with your real estate agent as well.
Escrow will send your loan documents back to the bank for funding review. Once reviewed, the funder will will let us know if there are any remaining funding conditions for escrow or the borrower. Once the loan funds, the money from the bank will be wired to title to record. Escrow is responsible for setting up the recording with title. Once the property has been recorded, you will coordinate with your real estate agent to get the keys!
The best way to thank CLS for all their hard work is by introducing your friends, family and colleagues who are looking to purchase a new home, second home, investment property, or even to refinance. Our goal is to provide peace of mind to our clients throughout their journey of home ownership and build the trust needed to become their personal loan specialists for life! Enjoy the experience of the CLS lending difference.