Mortgage Loan Approval Process

The 6 steps of the loan approval process

1. Application/Documentation

Once pertinent documentation is obtained from the borrower, Back Bay generates the mortgage application, requests a credit report and orders an appraisal of the property. Should any issues arise, we request additional information and items as needed.

2. Loan Submission

Prior to submitting the loan package to a lender, the loan originator reviews current mortgage programs to insure the borrower the best product, rate, and term. The loan is then assigned to a loan processor who puts the loan package together, sends the completed application and Good Faith Estimate of closing costs to the applicant for review and signature, then submits the loan package to the chosen lender for approval.

3. Loan Approval

Once all the outstanding loan conditions are met to the satisfaction of the lender, Back Bay will notify all parties that the loan has been cleared to close.

4. Documents are drawn

The lender prepares the closing package and sends it to the attorney prior to closing. At this time, the borrower is told how much money to bring to the closing table (if applicable).

5. Closing Funding

The loan is funded and closed once all parties have signed the loan documents.

6. Recording

The attorney records the note and deed with the town recorder's office.

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