Brokers help themselves when they walk their clients through the loan process. It sets their expectations and prepares the client for the journey.
Understanding the Loan Process: Setting Client Expectations
How quickly the loan process moves depends on the client. If their paperwork is in order and they are well-qualified, they can close a home loan within 30 days. Clients who have a couple of spots on their credit record and require more time to gather supporting documentation add time to their frame. Brokers can be a big help in getting their clients ready for the process.
Understanding the loan process is in everyone’s best interest. It’s a good idea to set expectations because it helps clients prepare for several scenarios. To understand the process, we break it down into nine steps.
The first step asks the client to put together a budget. It helps them realistically decide how much they can afford to borrow. Next, it’s time to get pre-approved. A pre-approval allows the applicant to start shopping for a home and make an offer. Sellers want to see the pre-approval letter because it means they’re a real contender.
When an offer is made, it’s time to order an inspection of the property. The lender will ask for the inspection report. It starts to set up the possible loan terms based on the property. Fill out the loan application, and have the property appraised by a professional.
The application goes to the underwriting department and mortgage processing. As soon as those two departments approve the application, the applicant closes.
A loan specialist remains in contact with the applicant to keep them engaged. It helps the process run smoother. Brokers help the process move quicker by helping their clients remain organized.
Understanding the Loan Process Conclusion
The loan process is long and tedious because lenders are assessing risk. An applicant who is organized can sail through the process without too much trouble. Mortgage Street works with brokers and the clients that they represent.