Steps Leading To Clear To Close And Home Loan Closing
This Article On Steps Leading To Clear To Close And Home Loan Closing Was PUBLISHED On July 14th, 2019
Steps in the Mortgage Process: Underwriting – Clear to Close
There are certain steps leading to clear to close.
- The mortgage process starts with the pre-approval process
- The borrower get qualified by a loan officer
- The loan officers make sure borrowers meet the minimum credit score requirements
- Furthermore, the loan officer needs to make sure the borrowers meet the debt to income ratio requirements on the particular mortgage loan program
In this article, we will discuss and cover the Steps Leading To Clear To Close And Home Loan Closing.
First Stage In The Steps Leading To Clear To Close And Home Loan Closing
Here are the steps leading to clear to close in the mortgage process:
- The borrower then gets a pre-approval letter by the loan originator
- Buyers go shopping for a home
- Once the home buyer decides on a particular home that he or she wants to purchase, they enter into a real estate purchase contract
- Once the buyers and sellers sign the real estate purchase contract, the contract is then submitted to the loan officer
- This is when the mortgage process begins
- The loan officer will gather all necessary docs such as two years tax returns, two years W2s, most recent paycheck stubs, two months bank statements, asset accounts such as 401k accounts and investment accounts, pertinent documents that
- Bankruptcy paperwork, foreclosure paperwork, short sale paperwork, divorce decree, child support paperwork, alimony paperwork, and other necessary paperwork needs to be provided by the borrowers
- Once all of the documents are collected, the loan officer will submit the whole package to the processing department
- A mortgage processor will be assigned to the file
- The mortgage processor will make sure that there are no missing items
- The processor will make sure all paperwork is updated such as having the most recent paycheck stubs and bank statements.
- The mortgage processor will then submit the file to the underwriting department
- A mortgage underwriter will be assigned to the mortgage file
- The mortgage underwriter will go over the file
- Underwriters will make sure that the file is complete and meets all of the mortgage guidelines
- The underwriter will thoroughly review the borrowers’ credit, credit scores, credit history, income docs, asset information, and letters of explanations
- Once the mortgage underwriter feels comfortable with the applicant and sees that the borrower meets all guidelines, he or she will then issue a conditional mortgage loan approval
- The file then goes back to the mortgage processor
- It is the mortgage processor’s job to gather all the conditions that are requested by the mortgage underwriter
- The loan originator is notified of the conditions
- The mortgage processor with the help of the loan officer work together in getting the conditions
- Once the borrower submits all the conditions, the processor will submit the mortgage file back to the mortgage loan underwriter for a clear to close
- A clear to close is great news
- This is because it means the lender is ready to fund the loan and send the closing paperwork to the title company
The Clear To Close On The Steps Leading To Clear To Close
By this stage in the mortgage process, you are breathing a sigh of relief as you are in the final stages of the mortgage process. Congratulations, you have made it through the hard part! Once you got the clear to close, the following steps are taken:
- For borrowers and Loan Officers, receiving the Clear to Close is like music to your ears!
- Once you receiving the Clear to Close, the lender, realtor, and closing agent will work together to schedule a closing date
- The lender will work to prepare all the required documents required to be signed at closing
- After receiving your Clear to Close (CTC), there will be a series of quality control checks that take place
- Do not be alarmed if the QC process asks additional questions
- This is part of the process of ensuring that all the proverbial I’s are dotted and T’s are crossed, it is a formality to protect the lender
- Three days prior to closing, borrowers will receive a series of disclosures
- Final disclosures will outline all of your loan details and state your required cash to close
- Upon receiving these disclosures, it is important that you immediately acknowledge them as there are timing requirements for closing
- Prior to closing, you will prepare a Certified Check to cover your cash to close amount
- Borrowers will also be given instructions on what they need to bring to closing, which will likely be your certified check, driver’s license or state-issued identification, and your social security card
Congratulations on making it to this stage, you are within a few days of home ownership!
Starting The Mortgage Process With A Direct Lender With No Overlays
This article on Steps Leading To Clear To Close was written to inform our borrowers of the overall mortgage process.
- Gustan Cho Associates Mortgage and Real Estate Informational Center and Loan Cabin Inc. are direct lenders with no overlays on government and conventional loans
- We are a Fannie Mae, Freddie Mac, Ginnie Direct national mortgage banking company
- The Team at Gustan Cho Associates specialize in FHA, VA, USDA, NonQM, Reverse Mortgages, FHA Rehab Loans, Conventional Loans, Jumbo Mortgages, and alternative financing
- Since Gustan Cho Associates at Loan Cabin Inc. is a direct lender, there are no overlays
- This holds true as long as the automated finding per Automated Underwriting System renders an approve/eligible, borrowers are set to go
- This is because there are no FHA Lender Overlays
- Over 75% of Gustan Cho Associates borrowers are folks who either got denied by another lender at the last minute due to one reason or another or due to their overlays
- A large percentage of Gustan Cho Associates borrowers have credit scores under 600 FICO
Many FHA lenders require higher credit scores due to their overlays. FHA, VA, USDA, Fannie, Freddie does not require borrowers to pay off outstanding collection accounts to qualify for these mortgages. High balance collection and charge off accounts do not have to be paid off to qualify for home loans.
If you are in need of a direct lender with no overlays, contact Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at email@example.com. We are available 7 days a week, evenings, weekends, and holidays.