Phases of the mortgage loan processing services

Mortgage Pre-Approval

Sets you up for a smooth home buying experience.

For purchase transactions, our agents would first want to know if you can get a loan. For the process to start, it is being advised to approach us with a lender pre-approval already in hand.

Pre-approvals don’t take much time. They involve a tri-merge. This shows the credit score and credit history as reported by third-party institutions. The lender can see your payment history and will be able to pinpoint the amount for which you qualify.

Mortgage pre-approvals signal to the seller that you’re a serious buyer. Once set up, the following phases would be an easy journey for you.

House shopping

Shopping for houses online is convenient, easy, and fun. But there are a few things to consider:

• National real estate portals don’t have accurate home prices.
• Listings on big real estate portals are not always up-to-date.
• Large portals don’t show 100% of the available inventory on the market

Once properties have are being visited with the agent, it’s time to make an offer.

It will include conditions that must meet requirements before the deal is complete. Here are a few common ones:

• Appraisals must come in close to the loan amount, not lower
• Home inspections do not find major issues with the property
• Borrowers get funding (final loan approval)

Mortgage loan application

Certain documents are always needed for this. Some would be from phone calls or online. 

• Employment
• Income
• Assets
• Debts
• Property information
• Financial blemishes
• Mortgage type

Information is being gathered and reviewed. The loan officer would then produce the loan estimate.

Loan processing

Agents gather documentation about the borrower and property. They then review the information and organize a complete package for the underwriter. 

Underwriting

The underwriter is the key decision-maker by evaluating the documentations.

• Borrower and property should match the eligibility requirements of the loan product.
• Reviewing credit history and capacity to repay the loan.

An underwriter may approve or reject the loan. After an initial approval and before closing, the interest rate for your loan is being locked. You and the loan officer will then choose a time to make the commitment.

Closing

Title insurance is being ordered before the closing meeting. This ensures you with the keys to your new home. Documents are then printed out and sent to the title company or attorney’s office.

One of the documents worth calling attention to is the Closing Disclosure. This document should be able to confirm all the costs. You have the right to review this three days before the closing meeting. Small things in the loan docs are being allowed to change, like typos. But bigger changes will reset the three-day review period.

You have the right to a final walk-through of the property 24 hours.

Lastly, the closing meeting. Time to sign documents and complete your purchase.

Key Closing Documents

• Closing Disclosure (or HUD-1 and TIL in some cases)
• Promissory Note 
• Deed of Trust
• Certificate of Occupancy

The contract mortgage processing with Magellan Solutions

Our contract processing services are being tailored according to your specific needs.

Magellan Solution provides experienced processing and closing teams. They dedicate themselves to helping you through mortgage loan processing.

Successfully executed processes for mortgage processing companies

• Lien Release
• Customer Service
• Investor / Trustee Reporting and Reconciliation
• New Loan Set-up
• Credit Reporting and Billing
• Flood Certification
• Investor Reporting
• Loan Modification
• Mailroom Operations
• Obtaining Tax Amounts Due on Real Estate
• Post Closing Follow-up
• Title Examination
• HUD Preparation and Follow-up
• Payoff
• Loan Amount Revision

Magellan Solutions has been catering to the needs of clients. Our loans and mortgage process portfolio continues to evolve. As a result, we continually migrate and deliver higher-value processes.

The mortgage crisis in the US had an impact on the outsourcing industry. Because of this, companies decided to outsource some of their tasks.

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Contact us today for more information.