Congratulations! You've taken the first big step towards homeownership.  Now, the real fun (and a little bit of paperwork) begins.  Let's break down the steps from application to closing. The work we do in the first few days will ensure a smooth loan process.

Quick Start:

• Congratulations! Offer has been accepted.
• Review and update loan application
• Update loan terms and discuss interest rate, payment and closing cost
• FSB collects financial and property documents for underwriting
• Review and lock interest rate
• Send initial loan disclosures to your email (signatures required)
• FSB orders appraisal
• FSB orders title work
• Once initial loan disclosures are received, the file is sent to FSB processing team for review

Important Milestones:

• Appraisal: This will be ordered Day 1. The appraiser contacts the listing agent for access to the home. This may take a few weeks. Once complete the appraiser sends their report to FSB. Your lender will forward you a copy of the appraisal. It’s important to get this ordered quickly because the appraiser is an independent 3rd party and doesn’t work for FSB.
• Title Work: This will be ordered Day 1. The title company reviews and prepares title work. They also assist with updating abstract information and balancing closing settlement fees. Basically, they ensure there are no liens or judgments on the property when you take possession, and the legal transfer of ownership is recorded correctly.
• Processing: The loan is first sent to the FSB processing team to ensure all documents are uploaded correctly to the file and that we have completed all required compliance tasks. They facilitate a smooth and speedy process to prep any other documents requested for underwriting.
• Underwriting: It takes about 2-3 weeks for underwriter review. Once the underwriter receives the file, they are responsible for risk assessment. Not only do they want to make sure this is a good loan for the bank, but they also want to ensure this is a good financial decision for you. The underwriter will review four main things:
  • Income - do you have income to support the new monthly payments.
  • Property - is the property in good shape and valued to what you’re paying.
  • Assets - do you have the funds needed to close (and some money left in the bank when we’re done)
  • Credit - are there any credit issues or concerns and how does that effect the overall loan risk
• Once the underwriter completes their review they will issue “Loan Approval” this is a major milestone because it means we are nearly clear to close.

Finalizing Your Purchase:

• 3-5 Days before closing. Your lender will send you initial closing disclosures. This document will give you a breakdown of your final closing including Loan Amount, Interest Rate, Total Payment, Closing Cost and Cash to Close. You will review this document with your lender to ensure there are no questions or issues with any of the financing information. This document will need to be electronically signed.
• 2 Days before closing. Your lender will send the final closing package for your review and signature via E-sign. I send them to you early so that you have time to review and feel comfortable with what we’ll be signing. My hope is to address any and all questions well before the day of closing. You will be able to sign some of your documents electronically, the day of closing.
• Closing Day. Get your writing hand ready. During closing you will walk through all the documents with your lender and realtor, and hand sign each one. Bring your driver’s license and a check (personal check is fine). Closing is very straight forward and should only take about 15-20 minutes. Then you get the keys to your new home!

This is a very general overview of the mortgage process. Your lender will be in contact with you throughout your journey to keep you informed of any issues that may arise or any additional documentation that may be needed. It is important that you respond and gather any information as quickly as possible to keep the process moving smoothly.