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What are the loan phases? How do they work?

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Frequent Contributor

What are the loan phases? How do they work?

What are the phases of my loan with a new build? 

I initially recieved a pre qual and put earnest money down and have already selected my item at the design center and we signed the contract on 9/24/16 they are asking for LOE that i have completed and sent back already. Is this for the pre approval? What stages are next and when does the actual process of breaking geound begin? Would they build if i wasnt a solid sale?(i know there are conditions) eveyone is so quite and just asking for documentation at this point and havent explained the whole process, my sales lady doesnt seem concerned and said no news is usually good news with this lender. We still have 5 months to go i guess im just anxious....im sure they wouldnt build if there was some major concerns right?

Current Ficos as of 01/2017 Equifax 640, Transunion 690 Experian 690 Mortgage middle score of 677
9 REPLIES 9
Established Contributor

Re: What are the loan phases? How do they work?

A builder looks for a pre-qualification letter, this comes from your mortgage lender after a hard credit pull and you stating your income (no documentation needed at this point), if your score is good enough and the income the LO will ask how much are you needing then will send that letter to builder.  Once received depending on what else is going on in that community you should see groundbreaking about 2-3 weeks from that time.  After that all is quite for months until you're about 60 days from a close date then they will ask for all they need from you.

" EX 698 EQ 701 TU 707 MMS 705"
Message 2 of 10
Frequent Contributor

Re: What are the loan phases? How do they work?

They have done the HP and asked for all my w2's and tax returns with paycheck stubs and this week i had to send in the LOE's soooo the are requesting more upfront whcih is best in my eyes so they can see the full picture...this will be a long 5 months lol. Im so nervous. Thanks for the reply

Current Ficos as of 01/2017 Equifax 640, Transunion 690 Experian 690 Mortgage middle score of 677
Message 3 of 10
Frequent Contributor

Re: What are the loan phases? How do they work?

At what point is a processor or underwriting done? Isnt that the for sure pictuee where they rule oit serious issues  in my file?

Current Ficos as of 01/2017 Equifax 640, Transunion 690 Experian 690 Mortgage middle score of 677
Message 4 of 10
Super Contributor

Re: What are the loan phases? How do they work?


@jamevfan wrote:

What are the phases of my loan with a new build? 

I initially recieved a pre qual and put earnest money down and have already selected my item at the design center and we signed the contract on 9/24/16 they are asking for LOE that i have completed and sent back already. Is this for the pre approval? What stages are next and when does the actual process of breaking geound begin? Would they build if i wasnt a solid sale?(i know there are conditions) eveyone is so quite and just asking for documentation at this point and havent explained the whole process, my sales lady doesnt seem concerned and said no news is usually good news with this lender. We still have 5 months to go i guess im just anxious....im sure they wouldnt build if there was some major concerns right?


sounds like you are using the builder's preferred lender.

a lot of those lenders leave a lot to be desired.

they should be able to answer your questions.

 

but to answer the question. yes, it is a good sign that they want to proceed.

 

 

Retired Lender
Message 5 of 10
Frequent Contributor

Re: What are the loan phases? How do they work?

They leave a whole lot to be desired and the only way i can get anything is seeing the progression of the whole process.... hoping things will change with the communication and im sure it will. I hear that there is a lot going on with the lender switch with the builder and i was so lucky to start my processs when they started the transition ugh 

Current Ficos as of 01/2017 Equifax 640, Transunion 690 Experian 690 Mortgage middle score of 677
Message 6 of 10
New Contributor

Re: What are the loan phases? How do they work?

I am pretty much in the same spot with our new build as you. We got our preapproval with the builders preferred lender. My LO is really nice and pretty helpful. I sent in all of the financials and the price of the house has been finalized. I've been just sending them statements as they come and I haven't heard a peep.

They were pretty aggressive about getting all the financials in quickly, so if they aren't reaching out to me, I can easily assume no news is good news.

Since this is my second mortgage process, I'm more laid back about the whole thing (first time I was stressed out big time). I figure, if it falls through, pretty sure the worst I'm out is my $3500 earnest deposit. Not a huge loss.

Not sure if this is your first mortgage process, but if I could tell myself something for the first time around, it would be to not take it so seriously. Don't get me wrong, it's serious, but they are back to giving people mortgages that have no business having mortgages. You'll probably be just fine as long as you don't do anything wild.
Message 7 of 10
Frequent Contributor

Re: What are the loan phases? How do they work?

Xista thanks a bunch for the word of encouragement, actually i had a talk with myself today. Lol I will be concerned as this is my first mortgage but wont freak out because my husband brought up a point of if it does fall through we have plenty of money saved to go elsewhere but he seems to think we will be fine also, its just me being me...

 

Current Ficos as of 01/2017 Equifax 640, Transunion 690 Experian 690 Mortgage middle score of 677
Message 8 of 10
New Contributor

Re: What are the loan phases? How do they work?

Sure - most folks on this board have or are concerned for their first process. It feels like you are being interrogated for a crime and nobody is telling you how you are doing and you can't wait for it to be finished so you can go on with your life lol.

The key though...

The bank WANTS to give you the money
The builder WANTS you to buy their house
The other homeowners WANT you to close so added comp helps them

Everyone is working in your favor, even the underwriter believe it or not, so long as the numbers make sense.
Message 9 of 10
Frequent Contributor

Re: What are the loan phases? How do they work?

True.

Current Ficos as of 01/2017 Equifax 640, Transunion 690 Experian 690 Mortgage middle score of 677
Message 10 of 10
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