When deciding how much you would like to borrow, you must determine what kind of monthly payment you can make. Most guidelines recommend that housing expenses be limited to thirty to forty percent of your income. Consider other financial obligations both present and future such as car payments, medical expenses, and tuition costs. Your current debt levels, employment status, and credit history will also play a large role in the amount you are able borrow. The affordability and prequalification loan calculators on our website can help you estimate an appropriate loan amount. You can also contact us; once we’ve helped determine your loan amount and term you’ll be ready to be pre-qualified.
During pre-qualification one of our loan officers will work with you to determine a suitable loan amount, program, and term that best meets your needs. They will ask information about your income, debts, and obtain your credit report per your approval. Once you’ve determined the loan program and terms that best fits your needs, you are ready for the next step.
Mlend highly recommends that applicants gather and provide basic income/assets & credit documentation upfront as requested by your loan officer. Having this documentation early in the process allows verification of information and helps address any items upfront as needed. Once a contract is in-hand, your loan officer will update your loan file and begin the official loan process. Your loan officer will discuss rate-lock options, items needed to update the file, and will prepare necessary loan disclosures for your review. Your loan officer will be available for questions on these upfront disclosures and what to expect as the loan process progresses.
The application can begin once a loan program is chosen. The application can be filled out with the aid of your loan officer or on our website. You will need to provide any required documents for your loan program. The loan officer will discuss with you the various fees and estimated closing costs of your program. A Good Faith Estimate and Truth In Lending statement will verify these costs in writing within three days of your application submission. The loan package, consisting of the application and supporting documentation, will then be submitted to processing.
Once all information is obtained, your loan officer submits your loan package to processing. The processor will collect any missing documentation needed to submit your loan for an official underwriting decision. Working with your processor to obtain documentation quickly upfront and thru-out the process will create a smoother path to loan approval. In addition to the items you need to provide, the process requires coordination and cooperation with title companies, appraisers, your employer, and banking institutions. The processor will help coordinate this gathering of information and be a main contact for you during the process.
During the underwriting process, the underwriter will review & analyze all the loan documentation that was submitted. If any additional information is needed, the underwriter will issue a conditional approval listing the remaining documents needed for loan approval. If it is discovered the application is outside of our lending guidelines, your loan officer will work with you to determine the next step with your financing needs. At final loan approval, the underwriter issues the ‘Clear-to-Close’ which will then move your loan to the closing department.
If not already scheduled, Mlend will help to coordinate your settlement date and time. The loan closer prepares legal documents, coordinates figures with the settlement agent/attorney and provides you with final closing costs. The closer works directly with the rest of the loan team to make sure your closing complies with any / all underwriting requirements. And finally, the closer and funder facilitate the wiring of funds to the settlement agent so you can complete your transaction!