Prequalification

Prequalification occurs before the loan process actually begins. By assessing information you provide about your income and debts, we can help you decide the price range of homes you can afford. Having this knowledge before you begin looking will save you time. You can shop for homes in your price range that have the amenities you desire and save the disappointment of finding the "perfect" house - only to discover that you can't qualify for the loan.
 
Prequalification is also important if you are considering refinancing the loan on your existing home. Southern Funding Alliance can help you decide whether refinancing is a good option for you.

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Application

The application is the beginning of the loan process and either occurs after you have found a property you want to buy or have determined that you wish to refinance the loan on your existing home. You complete a mortgage application for a particular loan program and, supply all of the required documentation for processing. Various fees and down payment options are discussed at this time. The RMLO will deliver a Initial Fees Worksheet (IFW) and follow up with  (GFE) and a Truth-In-Lending Disclosure (TIL) within three days that itemize the rates and estimated costs for obtaining the loan.


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Processing of your Estimated Loan

We will typically submit the application through an automated underwriting system that will provide us with the necessary documentation needed for loan approval. In some cases, rarely me might  also manually underwrite an application package.  Our processor reviews the credit reports and documentation to verify your employment, debts, and payment histories. If there are unacceptable late payments, collections, judgments, etc., the processor requests a written explanation for you. The processor also reviews the appraisal and survey and checks for property issues that may affect final loan approval. The processor's job is to put together an entire application package for the underwriter.

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Underwriting

Our underwriter is responsible for determining whether the application package prepared by the processor meets all criteria. If more information is needed,  you will be contacted to supply more documentation.  If our underwriter approves the loan, we will issue a conditional commitment to lend, and works with you to clear any conditions and  schedule a closing time.

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Closing

The closing will occur after all conditions are cleared. At the closing, we wire funds immediately on purchases,and in three days for refinances.  The funds are disbursed by the title company.  Closings occur at different places in different states. For instance, some states require that the closing take place at a closing attorney's office, while others use a title or escrow company. You may also be able to close at your home. In most cases, the closing will take place at a local title company.