Buyer & Seller Guide

The Loan Process

  • Published 2023-03-10
  • Est. reading time 8 Minutes
  • Author admin

Step 1: Application
Your loan process should go smoothly if you complete your loan application properly and provide all necessary documentation to your loan consultant at the time of application.


Step 2: Ordering Documentation
Your loan consultant will order the necessary documentation for the loan as soon as it is received. Any verifications will be mailed, and the credit report and appraisal will be ordered. You will also receive a Good Faith Estimate of your costs and details of your loan.


Step 3: Awaiting Documentation
Within approximately two weeks, all necessary documents should be received from your loan consultant. Each item is reviewed carefully in case additional items may be needed from you to resolve any questions or problems.


Step 4: Loan Submission
Submitting your loan is a critical part of the process. All of the necessary documentation will be sent to the lender, along with your credit report and appraisal.


Step 5: Loan Approval
Loan approval may be obtained in stages. Usually within one to three days, your loan consultant should have pre-approval from the lender. If the loan requires mortgage insurance, or if an investor needs to review the file, final approval could take additional time. You do not have final loan approval until ALL of the necessary parties have underwritten the loan.


Step 6: Lender Preparation of Documents
As soon as the loan is approved and all requirements of the lender have been met, the loan documents will be prepared. These documents will be sent to the escrow officer, and you will be asked to sign the documents. Your lender may require an impound account for tax installment payments, depending on the type of loan.


Step 7: Funding
Once you have signed the documents and they have been returned to the lender, the lender will review them and make sure that all conditions have been met and all of the documents have been signed correctly. When this is completed, they will “fund” your loan. (“Fund” means that the lender will give the title company the money by check or wire.)


Step 8: Recordation
When the loan has been funded, the title company will record the Deed of Trust with the county in which the property is located (usually by the next day). Upon receipt of confirmation of the deed being recorded, title or escrow will then disburse monies to the appropriate parties. At this time, in most cases, your loan is considered complete.

Buyer & Seller Guide

Glossary of Terms

The following is a short glossary of commonly used terms during your escrow transaction. For a more complete glossary

Close Costs and Who Pays What

Closing costs are what the buyer and seller will pay as part of the escrow transaction. Some fees are negotiable between the seller and buyer

Real Property Tax Dates

The following schedule lists some of the more significant dates for California property taxes affecting property owners.


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