Your Guide To a Smooth Loan Process.

A step-by-step guide so you know what to expect from start  to finish.

Purchasing a new home or refinancing your current home may seem like a daunting process at first, but the experts at Loan City Home Loans are here to help you. We are dedicated to giving you, our customers, the opportunity to complete the mortgage loan process as conveniently and efficiently as possible.

On the following pages, you will find a step-by-step guide to help you through the home loan process. This guide will let you know what to expect from beginning to end, helping you stay organized and prepared each step of the way. Here you can learn about the process, as well as read about what documentation you will need before you begin.

Understand the home loan process, from application to closing. Here’s what you can expect.

Step 1: Submitting your loan application and documents

Step 2: Processing your loan application

Step 3: Finalizing your loan application

Step 4: Closing and managing your home mortgage

Successful homeownership

Feel free to contact your Mortgage Loan Officer or call 1.866.790.6925 at any time during the loan process.

Collateral and Credit are subject to approval. Terms and conditions apply. This is not a commitment to lend. Rates, terms, programs and conditions are subject to change without notice.


Loan City Home Loans       Equal Housing Lender © 2013

Go to Step 1

Step 1:

Submitting your loan application and documents

It is important to submit a complete application and include all of the required documentation to avoid delays in processing of your application. In order to submit a complete application, please fulfill the following requirements.

Starting the preapproval process

It is best to become pre-approved before you begin looking for a home. Most real estate agents ask about pre-approval for a mortgage before showing properties to a potential buyer, because a pre-approval letter shows that you are qualified, committed, and using a credible lender. An offer on a property is generally not accepted unless it is accompanied by a pre-approval letter from the lender.

If you are looking to refinance rather than purchase a home, contact your Mortgage Loan Officer to begin your application.

Required application information

The following information must be provided by all applicants included on the application:

  • Full name, Social Security number, and contact information
  • Employer information
  • Value of assets, including banking, retirement, and investment accounts
  • Expenses, including housing, credit card, and other loan payments

For purchase transactions only:

  • Address and sales price of the property being purchased
  • If currently renting: property address, monthly rent, and landlord’s name and address

Documents to be submitted with the application

The following information must be provided by all applicants included on the application:

  • Two most recent bank statements for all financial accounts, including investments
  • Copy of most recent YTD pay stub(s) to reflect the most recent 30 days of income
  • W-2 statements from past two years
  • Signed personal and business tax returns from past two years (include all pages and relevant schedules)
  • If self-employed: copy of most recent quarterly or year-to-date profit/loss statement

For purchase transactions only:

  •  Copy of signed Purchase and Sale Agreement

For refinance transactions only:

  • Most recent monthly statement for any mortgage, home equity loan, or line of credit you hold on your home



Depending on your individual situation, you may need to provide additional documentation.

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Step 2:

Your loan application is processed  

The review of your loan application and supporting documentation is reviewed, and loan disclosures are prepared by your loan officer or loan processor.

Loan disclosures

You will receive a set of disclosures from Loan City Home Loans that must be read, signed, and returned in order for us to continue processing your application. The loan disclosures will include a Good Faith Estimate (GFE), which is an estimate of the fees and closing costs itemized for the loan, and a Truth in Lending Disclosure Statement (TIL), which describes the credit terms of the loan. After reviewing and understanding your loan disclosures, return the disclosures to us so that we can continue processing your application.

To help with this process and make sure you understand what you are signing, your Mortgage Loan Officer will contact you and answer any questions you may have.

Property appraisal and title search

At this point in the process, Loan City Home Loans requires an appraisal of the property and a title search that includes a Preliminary Title Report. Your Mortgage Loan Officer will contact you to order the property appraisal. We’ll follow up with you about the status of the appraisal and title search, and will notify you when these processes have been completed. The fees for both the appraisal and the title search will be contained in the closing costs listed in the GFE. In addition, you must pay for the appraisal up front.

Home inspection (purchase transactions only)

For purchase transactions, you may want to consider doing a home inspection. The home inspection is used to identify anything related to the home that could affect the loan or purchase. If a problem is found during the home inspection, the seller may be responsible for any necessary repairs as specified in the sales contract.

If a home inspection is required by the purchase agreement, the inspection should occur as soon as possible. Protect your purchase rights by making sure the inspection is completed by the stated mortgage contingency date.

Conditional Loan Approval

Conditional Approval means the loan is approved provided the additional items being requested by the underwriter can be satisfied. All conditions, documents or items must be provided and processed before Final Loan Approval. Common conditions include documenting assets and income as well as homeowners insurance policy, an acceptable preliminary title report and appraisal supporting the purchase price or value stated in the loan application.

Your almost finished with the loan process.


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Step 3:

Finalizing your loan application

Once you receive Conditional Loan Approval, additional conditions must be met before your loan can be finalized. Once we have received all of the required information and documents, our Loan Underwriter will determine whether the approval criteria for the loan have been met. If so, you will receive Final Loan Approval.

If any further documents are required after your Conditional Approval, your Loan Officer will contact you so that you can submit the documents and avoid delays. In addition, Final Loan Approval is dependent on a homeowners insurance policy, a satisfactory property appraisal, and an adequate title insurance binder.

Homeowners Insurance

You will need to provide proof of homeowners insurance for both purchase transactions and refinance transactions. For purchase transactions, proof of a one-year insurance policy must be provided either at the closing or beforehand. For refinance transactions, the declarations page of your current insurance policy is sufficient.

For the requirements on homeowners insurance policies, contact your Mortgage Loan Officer.

Lock in a mortgage rate

At this point in the process, it is a good idea to lock in your mortgage interest rate, if you haven’t already done so. You can lock in your interest rate when you begin your application or at any point in the process up until you receive your loan documents.

To lock in your mortgage rate, contact your Mortgage Loan Officer.

Final Loan Approval

The Underwriter assigned to the loan has been involved throughout the process, reviewing all documents provided by the borrower. Also, property related information such as the property appraisal and title are reviewed. Once all the items on the Conditional Loan Approval is cleared Final Loan Approval is issued, and the loan is moved out of underwriting and place in line for loan docs.

Time to sign loan documents and fund your loan.


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Step 4:

Closing & managing your home loan
Our professional loan officers are there to help every step of the way. Once your loan application is out of underwriting, it is time to sign your final loan documents and close your loan. Closing day is an exciting time, so let’s talk about how to get prepared.

How to Prepare for Loan Closing
Gather all of your loan paperwork in one place and bring it with you to the closing appointment. This the good faith estimate, loan contract, proof of title search and proof of homeowners and mortgage insurance, home appraisals and inspection reports.

Signing Documents at Loan Closing
You can expect to sign many pages of legal documents at closing, including agreements between you and the lender, you and the seller, and documents to transfer ownership of the property. Read your loan documents carefully and if you have any questions about what you are being asked to sign, your loan officer is there to help. Make sure everyone who is named on the documents is present to sign and brings their license or other valid form of identification.

Closing Costs and Escrow
In addition to signing documents, you will also also will need to pay closing costs and escrow items. Each lender may handle them differently Your loan is either structured such that the costs are incorporated into the cost of the loan by rolling them into the principal balance of the new loan, or agree to pay a higher interest rate and the lender covers it, or the buyer can directly fund the closing and escrow costs.

Get Ready to Enjoy Your Home!

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