Mortgage Services
Narrowing down the hunt for borrower's next home is something borrower can make quite a bit of ground on by them self. However, borrower can't really dive into the process of finding the specific home without having some idea what kind of mortgage they can get or afford. Borrower might even settle on a home that is worth less than their spending power, meaning they buy something too small. This is why it's smart to partner up with a mortgage broker that can guide them through the entire lending process from beginning to end. The Mortgage Banking Process is a cyclical process and therefore does not have a starting or ending point. "Mortgage Banking includes The Origination, Sale and Servicing of mortgage loans secured by either residential or commercial real estate". There is a critical component of the entire loan origination process that can be broken down in to seven stages -
At this stage the potential borrowers get a list of items they need to pull together to submit to the lender this is typically going to include current employment information including hourly wages, salary, total household income payment history, bank statements, tax returns things like that once this information submitted to the lender it's typically processed and a loan pre-approval was made which allows the borrower's application to continue through the process so second there's a
In this stage of the process the borrower completes the loan Application sometimes, the paper applications completed but more often than not today and electronic versions completed and submitted. New technologies allow completing the application online or through even, a mobile application and all that information is collected and can be tailored to a specific loan product.
So when the application is received by the credit department the first step is to review it for accuracy and completeness. Our Loan processor ensure all the required fields are filled in otherwise, the application is going to be returned to the borrower or the loan Processor will have to reach out to the customer to procure the required missing information depending on the technology employed by the lender a sophisticated loan origination system or l OS can automatically flag files with missing required fields and return it to the borrower's to rework.
When an applications dean complete, the underwriting process begins the lender runs the application through a review of a variety of components such as credit Score risk scores and many lenders will generate their own additional unique scoring criteria that are specific to their business or industry sometimes, this process was fully automated and other times its manual or sometimes a combination of both. The file will be sent back to the applicant for additional information. A denial may be revisited if certain parameters are changed such as reducing the requested loan amount or revising Interest rates to lower payments.
Once underwriter grants final approval, the loan docs will be ordered and sent to the local escrow company that will handle the closing. The settlement statement provides a breakdown of charges and credits associated with loan and it details about the loan amount, cash needed to close, monthly payment, mortgage insurance, taxes, homeowners insurance and other important information. This is a workable document that can change prior to closing. Loan officer will walk through this document with borrower prior to Closing to make sure there are no surprises when closing the loan. Once the borrower and the lender have approved the settlement statements, the documents will be released to the title company to prepare for closing date. The document signing process will be handled by a trained closing agent who will walk borrower through the final paperwork and explain what the borrower are signing.
The escrow company will prepare a final closing disclosure listing all costs, fees, down Payments and loans related to the purchase and who's responsible for paying them. The escrow company will send it to the lender for review and approval. Once approved the funding of the loan will be scheduled and the lender will wire the funds to the title company. The title company holds all funds in escrow until all legal documents are recorded typically the next day and then disperses the funds in accordance with the closing disclosure.
The packaging mortgage loans for sale in the secondary mortgage market by a financial institution or mortgage banker who has originated the loans.