Mortgage Loan Process

Mortgage Application
The mortgage application process is where you fill out the application. This can be completed online, over the phone, or in person. Once submitted, you must sign various forms that authorize us to process your loan, and deliver your documentation (Bank statements, pay stubs, W2s, etc…please see below for full documentation requirements). Obviously if you are doing this through the mail it can take a week or more but if you fax, email, or drop off the documents, it only takes an hour or so. Once the information is received, we order the appraisal from a Vermont licensed appraiser and order the title policy from an attorney.

Mortgage Processing
When all of your documentation is received it then goes to a processor who verifies and validates all of the information to be true and correct. Verification requests may be sent to your employers, mortgage holder/landlord and lending institutions. This is done by fax when possible.

When all the information is collected the processor then verifies that basic lender loan requirements have been met. The file is then packaged in a manner the lender specifies. The completed package is then sent to the underwriting department of the lender. If your loan qualifies for automated mortgage underwriting (DU--Desk top Underwriter or LP--Loan Prospector), the documentation requirements are often cut in half.

Mortgage Underwriting
The underwriter reviews your loan package to make sure it conforms to all the guidelines required for that loan program. They also review the appraisal and title report and may do additional validation of employment, mortgage payments, and credit. And, anything else they feel is necessary to document your loan. They have ultimate power and decision authority over the approval of your loan. The time required to do this is driven by the volume in the market. If the market is flooded we have seen it take two weeks but under normal conditions it only takes two to three days.

Automated Mortgage Underwriting
Most lenders today use Automated Underwriting (by computer). The advantage is less documentation and it speeds up the process. The computer actually makes the approval decision and the underwriter only reviews the supporting documentation and the appraisal. However, if any documentation is missing, inaccurate, or does not agree with the 1003 (application), the loan will be kicked out of this system until documentation requirements are met or the loan is turned down or resubmitted.

Conditions To Close
When the underwriter is done reviewing your loan he or she will send "conditions to close" to us and we will contact you to inform you of the outstanding documentation needed for full approval. When these needs have been satisfied the underwriter will give a final approval and "clear to close".

Clear To Close
When we receive the clear to close, we then schedule and coordinate with all the parties the time and location to sign the final documents to close the loan.

Draw Documents/Closing
When everything is scheduled the lender then draws the document package and sends it to the closing attorney, which is usually sent via email. Lastly, you meet, sign the papers, and pick up the keys!!!

Application Checklist

Everything you need to know...

Documentation Required

All Transactions:

     W-2 or Tax Returns (if self employed) for two years

     Most recent pay-stub
     All pages of most recent bank statements
     Investment / Asset Account statements

Additional Documentation That May Also Be Required:
     Purchase Agreement (if purchase)
     Award letter (if retired)
     1st Mortgage Statement (if applicable)
     2nd Mortgage Statement (if applicable)
     Homeowner's Insurance Declaration page
     Rental Agreement (if rental properties are owned)
     Mortgage statements (on other properties if any)
     Drivers License
     Bankruptcy Papers (if applicable)
     Child Support / Alimony (if applicable)
     Business License or Letter from CPA (if self employed)

You may send in your application:

     *Via Email
     *In Person: 346 Shelburne Road Suite 403, Burlington, VT 05401
     *Via Fax 802.863.8817