Consultation - To start the process we should discuss your goals and objectives for your new loan. Based on your goals and objectives, I can recommend some options for you. Once we establish which options you would be comfortable with and would like to pursue, I will email you a detailed custom quote for your review. Once you have reviewed the quotes and are ready to continue with the process, we will then move on to the "Application Package".

Application Package - Completing the loan application is the first step. The application consists of the Fannie Mae form 1003. Married applicants can use the same form and non-married co-applicants must fill out individual applications. This can be completed in person, over-the-phone, by mail, by email or online. The application package also consists of various additional disclosures and consent forms that will need to be signed by all applicants. If the application was taken over the phone or online, the completed application, disclosures and consent forms will be sent to the applicants at a later date for signatures.

Credit Report - A credit report is required for all applications. The applicant must sign a Borrower Certification and Authorization form to allow us to access their credit information. From the credit report we receive FICO scores for each applicant which will allow us to grade the credit level of the applicants.

Additional Supplemental Documentation - Based on the information listed on the loan application, the purpose of the loan and the FICO credit grade from the credit report, additional documentation may be required. Additional Supplemental Documentation may include but not be limited to: purchase agreement (purchases only), income, employment and asset documentation.

Escrow - An escrow account will be opened on behalf of the applicants. The escrow officer will be given the transaction details that will ultimately be translated into the escrow instructions by the escrow officer. Soon after, the escrow instructions will be sent to the applicants to sign and return in a timely manner. The escrow officer will also open the title account with the title company.

Escrow Instructions - Escrow instructions define all the conditions that must occur before the transaction can be finalized. The escrow instructions represent your written statement to the escrow holder (the title company) protecting your interests and specify, in a debit and credit format, the disposition of any loan proceeds and the conditions under which the Deed may be recorded.

Title - The title company is responsible for providing the preliminary title report (used during loan processing to determine if there are any lien issues to be addressed) and issuing the new title policy. In a purchase transaction, the title company will typically issue a California Land Title Association (CLTA) policy and an American Land Title Association (ALTA) policy. The CLTA policy is for the benefit of the new owner and the ALTA policy is for benefit of the new lender. In a refinance transaction, the title company will typically only issue the ALTA policy.

Appraisal - The appraisal will be ordered early in the process. There are primarily three types of residential appraisals that can be required by the lender based on the transaction details (appraisal fee will vary based on the type of appraisal). 1) Full Appraisal - this will consist of interior and exterior pictures and measurements along with an estimation of value, 2) Interior Appraisal - this will consists of interior and exterior pictures (no measurements) along with an estimation of value, 3) Drive-by Appraisal - this will consist of just exterior pictures with no estimation of value. Typically the appraiser will not need to make an appointment with the homeowner for this type of appraisal. The appraiser will collect the appraisal fee from the homeowner at the time of the initial visit.

Upfront Rate Lock / Float-to-Lock - You will have the option to lock in your interest rate upfront or float-to-lock. When you lock your interest rate upfront, the lender will commit to the locked rate for the period of the lock term. Anytime you lock in a rate you must have a term length sufficient to ensure that the loan can fund within that term or the lock will expire. Typically, the lock terms are in increments of 15 days. Each 15-day term will add a nominal cost to the loan (i.e. a 30 day lock is more expensive than a 15 day lock and a 45day lock is more expensive than a 30 day lock). The float-to-Lock option can be used to benefit from dropping interest rates or used just to reduce the necessary lock term. If you believe that interest rates will drop, you can choose not to lock in your rate in until you have reached your interest rate goal. Otherwise, if you just want to achieve a short lock term, you can float your rate and let the processing of your loan continue to the point where your loan can close within an acceptable amount of time and then lock in your rate at that time (i.e. a 15 day lock instead of a 30 day lock). Eventually, either way you will have to lock in your interest rate prior to drawing the documents in order to have a note rate appear on the documents.

Submission / Pre-Document Conditions - During the initial process, the loan will be submitted to the lender for consideration. At this time, the lender will advise Independent Financial Services (IFS) of any information, documentation or pre-document conditions that will need to be addressed by IFS before the loan documents can be drawn.

Loan Documents - Once the loan has been approved, the interest rate locked and all outstanding pre-document conditions have been met, the loan documents will be prepared by the lender. Once prepared, they will be delivered to IFS's office via delivery service or email. Once they are review by IFS and determined to be accurate and complete, they will be forwarded to escrow and the applicant will be contacted and a signing date set.

Signing the Loan Documents - There are two options. The first option is to sign the loan documents at the escrow office with the escrow officer (this option is included in the GFE as the notary fee). The second option is to have a mobile notary meet the applicant(s) at a location selected at the discretion of the applicant(s) (there may be an additional fee for this option).

Rescission Period - (primary residence refinance only) - The earliest the loan can fund is 3 business days after the loan documents are signed. These three days are considered the rescission period. It is a cooling off period and it is intended to give the applicant(s) ample time to review the loan documents and to cancel the loan if they desire.

Pre-Funding Conditions - During the period between ordering the loan docs and funding the loan, IFS will work with the lender to satisfy any outstanding conditions that the lender requires to be met prior to funding the loan.

Funding - Once the rescission period has passed (refinance only), the signed loan documents have been verified to be correct and all the pre-funding conditions have been met, the lender will wire the loan funds to the title company for disbursement.

Closing - Typically on the day after funding, the title company will record the new Deed of Trust with the respective county recorder and pay off all liens against the subject property that were required by the lender. Upon confirmation that the deed has been recorded, the title company will release the balance of the funds to the escrow company. The escrow company will in turn prepare the HUD 1 Settlement Statement (an itemization of the loan proceeds disbursement) and then distribute the proceeds to the interested parties by wire, delivery service, messenger or mail. At this time your loan is considered complete.