Approval Process
If your loan is approved, there is still some processing left to be done. Some items may need to be updated, and some information may need to be supplemented. Any conditions on the loan will appear during this time, and be presented to the investor for review.
The investor on your loan will prepare your documents during this time. These documents are very important, as they are legally binding and finalize your transaction. There will be a few more forms which you will be required to sign, including:
- A Note-Promissory form which indicates the amount of money borrowed, the interest rate charged, the terms of repayment, and the monthly amount required.
- Your Deed of Trust makes the property as security to the loan and note, which is recorded with the county recorder's office.
- Your HUD 1 is the itemized break-down of all of the fees incurred for obtaining the loan, which you will be responsible for, or can negotiate with your seller.
Once your interest rate has been settled, a document specialist will draw up your loan papers. They will then be printed, and over-night shipped to the escrow company. At this point, they will contact you to set up an appointment to sign your documents. In order to save time, the documents may be emailed. This process will usually take anywhere from 2 to 5 days.
