Understanding your home loan’s unique timeline can help ease some of the uncertainty and stress that can arise when applying for a mortgage. From purchases to refinances, this basic timeline gives an overview of how the loan process flows.
Day 1: Complete Application Received and Initial Disclosures Sent
Within three business days of your submitting a loan application, a CIS loan officer will provide you with a Loan Estimate. This document outlines the key terms of the mortgage including interest rate, closing costs, and mortgage features such as: an Adjustable Rate Mortgage (ARM) or Fixed Rate Mortgage (FRM), whether a pre-payment penalty applies or a balloon payment is included.
Days 2-6: Initial Processing of Application – Credit Conditions
Once you submit all necessary personal and financial information—pay stubs, bank statements, tax returns, driver’s license, Social Security cards, etc.—a CIS loan officer collects up-front verifications. Keep in mind that the more complicated the file, the longer the processing time. Your loan officer will provide you with a complete list of needed information and documentation; if you have any questions, just ask!
Days 7-8: Initial Underwriter Review – Conditional Loan Approval
At this point in the process the ball is not in your court. Just sit back, relax, and think about how you’re going to decorate your new home.
Days 9-22: Title Work and Appraisal Ordered
During this time, the property associated to the loan is evaluated. CIS uses the appraised property value to determine the loan-to-value ratio—the ratio of the mortgage amount to the value of the property. If the appraised property value is significantly lower than the property purchase price, a new loan amount will have to be determined. At this stage, all parties work to resolve issues—also called exceptions—identified in the title report. Examples include an easement or unpaid property tax bill. Any conditions such as: a homeowners insurance quote, additional check stubs, or rent receipts are noted at the time of the conditional loan approval and collected by your CIS loan officer.
Days 23-24: Final Underwriter Review
Your complete mortgage application is reviewed by the lender underwriter responsible for making the credit decision on the loan. Sometimes an application is approved but subject to certain conditions (see examples above) that must be fulfilled before the mortgage closes. Your CIS loan officer will contact you should this occur. Again, the more complicated the file, the longer the underwriting time takes.
Days 25-26: Rate Locked and Revised Loan Estimate
CIS will request a rate lock agreement and send a copy to you to sign. Should there be any revisions of key mortgage terms, such as interest rate or closing costs, a CIS loan officer will send you a revised Loan Estimate within three business days of the rate lock to sign and return.
Days 27-29: Final Disclosures and Issuance of Closing Disclosure
CIS will provide you with a Closing Disclosure that outlines the final, actual terms of the mortgage including interest rate, closing costs, and mortgage features at least three business days prior to the mortgage closing. Note that the three-day waiting period is only if the information can be sent and acknowledged electronically. Also, during this time, loan documents outlining the key aspects of your mortgage and property purchase are prepared.
Day 30: Closing
On this day the property seller receives money and you receive a title/ownership of the property. The mortgage closes and you have bought a home. Congratulations, you did it!
Ready to make the step toward home ownership? CIS Home Loans, a full-service mortgage bank, has served homeowners since 1991. The personal relationships we form during the loan process are as important as the loan itself. It’s why Character, Integrity, and Service make up CIS Home Loans’ name. For more information, click here. You can also follow us on Facebook , get pre-qualified, or apply for a loan today!