The Loan Process
Applying for a VA home mortgage can be intimidating and overwhelming. My job as your advocate is to take the mystery out of the process and to be there with you, every step of the way. The key to a successful transaction is good communication. With many lenders, there is a “deafening silence” between your initial loan application and your loan approval and closing. There is nothing more stressful than NOT knowing what is happening with your loan application.
When you work with me, I will be your direct point of contact from start to finish. I will be available nearly every day, including evenings and weekends, by phone or email, to answer your questions promptly and accurately. Communication is a two way street, so in return all I ask is that you provide me with accurate information, and respond to my requests for your documentation in a timely manner. Processing your VA loan application begins when we receive your complete documentation and items requested. Any delay in getting those items submitted will result in potential delays in finalizing your loan approval and closing.
To help expedite the process, we offer the latest technology, including secure, on-line loan applications, electronic signatures for most of our loan disclosures and secure email for scanning your documentation back to us.
On October 3, 2015 a new phase of the Dodd-Frank Financial Reform Act was implemented. This phase is commonly known as TRID (TILA-RESPA Integrated Disclosure) TRID includes new disclosures, new forms and new waiting periods for borrowers to review documents prior to signing them. Many lenders are now quoting 45 to 60 day timeframes to close a VA purchase loan and some are quoting even longer processing times. Envoy Mortgage is still able to close normal VA purchase applications in a 30 day escrow period, provided the borrower’s documentation is submitted to us in a timely manner. This can be determined once we have your loan application.
Here is what you can expect in the loan process:
Prior to submitting a loan application, it’s a good idea to discuss your situation with your Loan Officer to determine if there are specific issues that need to be addressed. This is a good time to ask the basic questions that you have regarding the process. At this time we can determine if you need a Pre-Approval or if you are in contract to purchase a home with a definite time requirement to close escrow.
Most loan applications are submitted prior to an applicant actually purchasing a home. There is a very good reason for this, as most professional Realtors and Sellers will not consider accepting an offer on a home unless the buyer has been pre-qualified or pre-approved by a qualified lender. The procedure is the same for the approval process with the exception of the appraisal.
This is the first step in your loan process and it should include your basic income, asset and employment information. This is only the first step in the process and the documentation we request will be required for your initial loan approval.
You can submit your application on-line through our secure server. Go to our home page and click on the “Apply Now” link. Complete as much information as possible and submit. If you prefer a paper application, there is a basic loan application form under the FORMS link for the paper application. This can also be used as a worksheet to help you organize your information, making the on-line application a more streamline process. If needed, we can have a phone conservation and I can complete your application by phone.
Request for Documentation
In the “Loan Information” section of this site you can find a basic checklist of the items required for most VA loan approvals. Your particular situation may require additional information and upon our review, those additional items will be requested from you. Your DD-214 (Final Discharge) is a required item and should be one of the first items you submit so we can verify your military service and obtain your Certificate of Eligibility. This can be done early by submitting your request under the Request form on VALender.com home page.
Once you are in contract to purchase a home, you will be sent the initial disclosures required by law and you will be asked to sign and return these disclosures with your signed intent to proceed. It is urgent that these items be signed and returned in a timely manner. There are some verifications that need your signatures to be sent out and returned so these need to get started as early as possible. We will communicate with your Realtor and the title company you have selected to keep everyone informed.
The Verification Process
Once your application has been submitted, your credit is reviewed and we will determine what additional documentation is required. You will be notified of these items and I will be available to discuss these items and answer questions. Your employment, income, assets and documentation will be verified and reviewed.
Locking Your Interest Rate
Your interest rate can be locked in anytime from application until loan approval. In order to lock in an interest rate you MUST have a loan application submitted with a property address and a definite close of escrow date. Rates are locked in for a specific period of time, so it’s important to know your closing date to make sure the lock term covers that date. Once locked, we cannot change your interest rate as we purchase the money for you at that rate.
When your application has been reviewed and initial disclosures have been signed and returned by you, we will order an appraisal on the property that you are purchasing. You will be required to pay this cost COD by credit card at the time the appraisal is ordered. The actual cost for that appraisal will vary, depending on the location and value of the property. You must sign and return the intent to proceed disclosure form for the appraisal to be ordered. We use independent appraisers familiar with the area your property is located.
If you are applying prior to having an accepted purchase contract to purchase a home, we will issue a Pre-Approval upon review of all documentation. For accepted purchase applications, your loan will be submitted for final underwriting and the appraisal will be reviewed when received.
Once your loan is approved and the conditions satisfied, you will be sent an estimate of your charges and monthly payment to review within a specified period, prior to signing your loan documents with a Notary. This is a critical period in the loan process as any changes require the estimate to be adjusted, with a new review period beginning again. This is the most significant change to TRID and it can cause delays in your escrow closing if anything changes at the end of your transaction. Once your loan documents are signed and notarized, and your funds to close are verified as received by the escrow company, we will fund your loan and the title company will have the deed recorded, normally within 24 hours of our funding the loan.
For Questions on the Loan Process, please contact Doug Bullwinkel at 916-295-0044 or email him at dbullwinkel@EnvoyMortgage.com