Our Loan Process
- STEP 1
- Check Rate with us at www.loanfactory.com
- STEP 2
- Complete the Loan Application
- STEP 3
- Lock Interest Rate / Cost
- STEP 4
- Order Appraisal Report
- STEP 5
- Process Your Loan
- STEP 6
- Sign The Loan Documents
- STEP 7
- Fund and Close Your Loan
You can check the real-time personalized rate quote for your loan scenario at our home page https://www.loanfactory.com. The result shows the low rates from all lenders we are doing business with that match your loan scenario.
Best if you can fill out the Loan Application online. Alternatively, you can come to one of our offices so that we can help you fill out the application and process the paperwork.
We will assign you to one of our experienced loan processors to process your loan. The loan processor will explain and guide you through the entire loan process.
STEP 3Lock Interest Rate / Cost
Once you send us all the required documents, we can lock the rate. We will set up an alert and will send to your email the update about rate/cost AS SOON AS rates changed. If the rate/costs meet your requirements, you can call us and we will lock rate for you.
We will not lock your rate without your permission and authorization. After locking the rate, we will always sent you an email confirmation stating the details of your locked rate and if there is any cost or any cash-back associated with the locked rate.
Most of the time, we lock for 30-days period. Within this time-frame, we must close the loan or we will lose the rate lock. Some lenders allow extension for 5 days, 10 days, 15 days, etc. but come with a cost. Some other lenders do not allow extension and we may lose this rate lock. These lenders normally have "Worse Case" Policy. That is if market rates are the same or better than the locked rates, we get to keep our rate lock. However, if market rates are worse than the locked rates, we must relock at the market rates. Time is of the essence and we should not let the locked rate expires.
STEP 4Order Appraisal Report
We must order an appraisal report so that lender can determine the value of the property.
The cost of the appraisal report is typically about $500. You will provide us your credit card information or give us a check so that we can order the appraisal report for you. If the loan is locked with no points, no costs, then the lender will credit you a sufficient amount to cover all closing costs including the appraisal fee.
Please notice that this appraisal fee is non-refundable. If the appraiser has not come to your property yet, then you can cancel and get a full refund. However, there is $75 lost for the appraisal trip if the appraisal already came to your house and you decide to cancel the appraisal order. If the appraisal report has been completed, then you will lose this appraisal fee if for ANY REASON, the loan cannot be funded.
If your house is in an uninhabitable condition, lender will not approve the loan. Lenders also requires that the property has smoke and carbon monoxide detectors installed as required by law.
STEP 5Processing Your Loan
It takes about one to three days for the lender to render a decision whether to approve your loan. Your loan may be denied or suspended because you are not qualified. Otherwise, the lender will conditionally approve your loan The lender will have a set of conditions that they can issue the final approval.
Please help return the documents back ASAP so that we can clear these conditions ASAP. Normally, you should give us the required documents within one to two days. Please RUSH.
STEP 6Signing The Loan Documents
Once all of the Prior-To-Doc conditions have been cleared, the lender will review all the loan documents one more time to see if there are anything missing. We, the broker, will order loan documents. In addition, we should have the loan documents to sign within two days of the request.
The loan documents are sent to the notary/closing agent for you to sign. The escrow office will contact you to schedule a time to sign the loan documents. After the loan documents have been executed, they will be returned to the lender.
When you sign the Final Loan Documents, please be consistent with your signature, do not cross-out anything, do not make changes, and do not alter the date.
STEP 7Funding and Closing Your Loan
After the lender has reviewed and approved the signed documents, the lender will contact your employer to verify your employment. After the verification of employment is done, the lender will wire the funds to the title company, who will then disburse the funds and record the paperwork with the county. At this point, your loan is considered closed.