Our Loan Process

step1-apply-best-home-loans-south-bay-torrance-manhattan-beach-hermosa-beach-redondo-beach-mortgage-broker-home-loanSTEP 1 – Apply

The first step in obtaining home loan is to fill out a loan application (referred to as a “Fannie Mae 1003,” or “Uniform Residential Loan Application”).
Any of our experienced loan officers are available to assist you in filling out the loan application and answering any questions you have along the way.

We will make an appointment to meet with you in person or over the phone to help obtain any necessary personal and financial information needed to initiate the loan process.

During this step, we will talk about running credit and also ask a series of questions to determine which documentation will be needed to pre-qualify you for a loan.

These documents will help us in the pre-qualification process:

  • Federal Tax returns for 2 years
  • W2's, 1099's for the last 2 years
  • Paycheck Stubs for 1 month
  • Bank Statements/CD's/Retirement accounts for the last 2 months
  • Most current Mortgage Statements for a refinance

If you own your own business or have rental properties then there are additional documents we will request.

 

best-home-loans-south-bay-torrance-manhattan-beach-hermosa-beach-redondo-beach-mortgage-broker-home-loanSTEP 2 – Information Verification
Once you have chosen a loan program, determined an interest rate, filled out an application, and you have provided us with the necessary documentation so we can take the steps to pre-qualify you. During this process we will provide you with our recommendation base on the results from our initial review. When you are ready to move forward on your loan then we send out initial disclosures and will start the verification process.

Our processor will send out forms to verify your employment history, bank account information, retrieve your credit report, open escrow and order your preliminary title report from the title company, and order your appraisal. Once we have gathered all the necessary information, we will compile your loan documents and submit them to the underwriter for preliminary approval.

 

best-home-loans-south-bay-torrance-manhattan-beach-hermosa-beach-redondo-beach-mortgage-broker-home-loanSTEP 3 – Approval
Your loan may be approved as submitted to underwritting, approved with conditions, or a counter-offer may be made for your consideration. If there are conditions on the loan in order for it to be approved as submitted, we will work with you to satisfy these conditions. Conditions might include an explanation letter, copies of investment documents, copies of divorce papers, or any number of items that may help clarify your qualifications for the loan.

 

step4-documents-to-escrow-best-home-loans-south-bay-torrance-manhattan-beach-hermosa-beach-redondo-beach-mortgage-broker-home-loanSTEP 4 – Documents to Escrow
After the loan conditions (if any) are met 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 you will meet with your Loan Officer and send them to a title or escrow company. Your escrow officer will arrange for an appointment with you when the loan papers are ready to be signed.

 

step5-close-escrow-best-home-loans-south-bay-torrance-manhattan-beach-hermosa-beach-redondo-beach-mortgage-broker-home-loanSTEP 5 – Close Escrow
The task of closing the loan is normally the responsibility of the escrow officer, or lender. This person or company is responsible for gathering all of the necessary documents (deed of trust, promissory note, etc.) and making sure all documents are signed. Following the lender’s instructions, the escrow officer, or lender then calculates the various prorations, charges, and adjustments (interest on your old loan, interest on your new loan,
money for impound accounts for taxes and insurance, etc.), 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. Whoever handles the escrow responsibilities also makes sure that all of the parties involved in the loan process are paid after the loan funds. Your loan will then close escrow and your new loan will be recorded.

We can help guide you through the loan process from the initial application to the close of escrow. Contact one of our experienced loan officers that will guide you step-by-step. Please contact us for more information or start your loan application online today.

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