Spending time with an experienced Loan Consultant can save you time, money and unnecessary stress.

The Loan Approval Process

The initial contact/communication will be done by one of Progressive Lending Solutions (“PLS”) experienced Loan Consultants who will complete a Uniform Residential Loan Application (1003).

The Loan Consultant will be requesting documents from the client such as; the last two years of w2 information, current pay stubs, current home owners information, asset/reserve information and other pertinent items that are relevant to the clients situation.  Other items could include:

  • On a purchase loan, the final purchase contract for the house (if applicable).
  • If self-employed, the underwriter may require 2 years personal and business tax returns, and a P&L.
  • Divorce settlement papers, if applicable.
  • Updated account statements for listed assets in the application that may have changed in value.
  • Information about debts or credit report items that may have been delinquent or not accurate.
  • Evidence of the clients mortgage or rental payments, such as canceled checks.
  • Various types of gift letters

When the Loan Consultant receives the requested documents, the underwriting/approval process will begin.  The file will be given to a processor at PLS, who will organize the paperwork and will most likely verify employment, bank balances and other information.

It is important that the client responds promptly to any additional requests for from the Loan Consultant while the loan is being processed.

The processor/LC will be collecting/verifying this information before presenting it to the underwriter.  The underwriter will review all the information in the loan file to determine if the application meets the guidelines for that particular loan.

When an approval is obtained, the Loan Consultant will contact the client to review the options available to them, in complete detail.  At that time, a precise rate, terms of loan applicable fees, other underwriting conditions and a tentative closing date should be agreed upon by the client and the Loan Consultant.

The file goes back to the processor to complete an appraisal request, order title insurance and complete any other conditions mandated on the underwriter approval.

Within 5-7 days of when the home is inspected, a loan closing will take place.  The documents will be drafted and sent to the title company for the closing. Most likely, the closing will be handled by a “closer” that the title company provides – most closings take about 30 minutes.

On most purchase transactions, the monies will be wired and received at the closing.  On most refinance transactions, monies will be wired on the third business day after the closing to the title company, who will then provide monies due to the client (rescission period).  It is common for the clients checks to be overnighted to them from the title company after the recission period.

Continuous support and communication will be provided to the client even after the loan comes to a close, to insure superior customer satisfaction!

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(Note: the above information is not in an exact order, nor does any of this information constitute a set process.  This information is to be used as an “idea” of how the loan process could be handled.  There are many circumstances that may cause this process to be delayed, denied, withdrawn or terminated due to, but not limited to; state laws, underwriting decisions, appraised values, income requirements, collateral requirements, market conditions, broker requirements, lender requirements, client requirements, credit requirements and other similar circumstances.)