Our Loan Process

• Pre-Qualification
• Mortgage Programs and Rates
• The Application
• Processing
• Required Documents
• Underwriting
• Closing
• Summation
  

Pre-Qualification

Pre-qualification begins the loan process. We gather information about a borrower’s credit, income and debts to determine how much the borrower can afford.

Ability to repay the mortgage is verified by your current employment and total income. Generally speaking, mortgage companies prefer for you to have been employed at the same place for at least two years, or at least be in the same line of work for a few years.

(Otherwise you may qualify for a NO Document Loan. Click Here for Details)

Each applicant is handled on a case-by-case basis. If you come up a little short in one area, you may be stronger in another. Mortgage lenders couldn’t stay in business if they didn’t generate loans, so it’s in everyone’s best interest to see that you qualify.

Mortgage Programs and Rates

To properly analyze a Mortgage Program, the borrower needs to think about how long they plan to keep the loan. If you plan to sell the house in a few years, an adjustable or interest only loan may make more sense. If you plan to keep the house for a longer period, a fixed loan may be more suitable.

Shopping for a loan can be both time consuming and frustrating. With so many programs to choose from, each with different rates, points and fees, an experienced mortgage professional at Gerson & Company will evaluate your situation and recommend the most suitable Mortgage Program.

The Application

The application is the true start of the loan process and usually occurs between days one and five of the start of the loan process. The borrower completes, with the aid of a mortgage professional, the application and provides all Required Documentation.

The various fees and closing cost estimates will be discussed and these costs will be verified by the Good Faith Estimate (GFE) and a Truth-In-Lending Statement (TIL) which the borrower will receive within three days of the submission of the application to the lender.

Processing

Once the application has been submitted, the processing of the mortgage begins. The Processor orders the Appraisal and Title Report. The information on the application, such as bank deposits and payment histories, are then verified. Any credit derogatory, such as late payments, collections and/or judgments requires a written explanation. The processor examines the Appraisal and Title Report checking for property issues that may require further investigation. The entire mortgage package is then put together for submission to the underwriter.

Required Documents

If you are purchasing or refinancing your home, and you are salaried you will need to provide the past two-years W-2s and one month of pay-stubs: OR, if you are self-employed you will need to provide the past two-years tax returns. If you own rental property you will need to provide Rental Agreements and the past two-years tax returns. If you wish to speed up the approval process, you should also provide the past three-months bank, stock and mutual fund account statements. Provide the most recent copies of any stock brokerage or IRA/401k accounts that you might have.

If you are requesting cash-out you will need a "Use of Proceeds" letter of explanation. Provide a copy of a divorce decree if applicable. If you are not a US citizen, provide a copy of your green card (front and back), or if you are NOT a permanent resident provide your H-1 or L-1 visa.

Underwriting

Once the processor has put together a complete package with all verifications and documentation, the file is sent to the underwriter. The underwriter is responsible for determining if the package is deemed an acceptable loan. If more information is needed the loan is put into "suspense" and the borrower is contacted to supply more information and/or documentation. If the loan is acceptable as submitted, the loan is put into an "approved" status.

Closing

At the closing the borrower should:

• A cashiers check for your down payment (if applicable) and closing costs if required. Personal checks are not accepted.
• Review the final loan documents. Make sure that the interest rate and loan terms are what you agreed upon. Also, verify that the names and address on the loan documents are accurate.
• Sign the loan documents.
• Bring identification and proof of insurance.

After the documents are signed, the closing agent returns the documents to the lender who examines them and, if everything is in order, arranges for the final funding of the loan. Once he loan has funded, the mortgage note and deed of trust are recorded at the county recorders office. Once the mortgage has been recorded, the final settlement costs are printed on the HUD-1 Settlement Form. Final disbursements are then made.

Summation

A typical "A" mortgage transaction takes between 14-21 business days to complete.

Apply Online and a Loan Officer will promptly get back to you.

Back to Mortgage Tools