Loan Transaction Checklist

March 19th, 2013

The below is what a mortgage borrower should know about the steps in a mortgage process and what is expected of them when applying for a mortgage. The turn times and ability of the mortgage lender to execute these steps below will vary according to lender capacity and client deadlines.

Mortgage Loan Transaction Checklist

DAY #1:

DAY #3:

  • Borrower should have received, signed and returned the loan disclosures.
  • Confirm with the lender that the appraisal has been ordered.
  • If the subject property is a condo make sure the lender knows the name and contact information of the property manager.
  • Does the lender have your exact and accurate address history to order the IRS 4506 Mortgage form?
  • Does your lender have an accurate social security number to order the Social Security Verification?
  • Have you gotten the lender all of the supporting documents are needed? purchase checklist or refinance checklist.

DAY #10:

  • Is the lender ready to submit the loan for loan approval?
  • Has the loan been thoroughly analyzed for:
    -acceptable appraisal
    -acceptable credit scores
    -any large, unexplained deposits on bank statements?
    -sufficient “cash to close”?
    -any odd deductions on pay stubs?
    -any gap in employment that is troubling? (60 days or longer needs to be addressed, 6 months or longer can be a problem).
    -any credit blemishes or low credit scores that are a cause for concern?
    -any appraisal repairs, value issues, or problem with comparables?
    -if buyer self-employed do they show sufficient income on tax returns?
    -if the subject property is a condo does everything related to the condo look satisfactory?

DAY #15:

  • Is the loan approved?
  • Submit any loan approval conditions to the lender ASAP, same day or next day.
  • If you have not done so already, start shopping for any necessary insurance required.

DAY: #18

  • Have you sent the lender a satisfactory homeowners insurance policy?
  • Is satisfactory title work in?

If all of the above is done, you should now be ready to settle your loan closing, and have safely and happily traversed the mortgage process.

Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.​

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