The Loan Process
With so many different steps involved in a mortgage, it helps to understand the basics.
We understand that mortgages can be confusing. That's why we've provided a step-by-step guide to help you understand the process. Please understand that these are just the basics, and every loan is different. Contact your SCBT mortgage lender for details concerning your loan.
If you are thinking about buying a home, we encourage you to review the many helpful resources and the “Shopping for Your Home” video on HUD.gov. The information provided will help you in assessing how much of a home you can afford, and will provide information on housing counselors in your area. We encourage the use of a housing counselor prior to buying a home. In addition to mortgage personnel, counselors can assist you by providing information regarding questions or concerns surrounding your purchase, fair housing laws, credit issues and foreclosure prevention.
Step 1: Application is underwritten. Your loan application is sent electronically to an underwriter for review. Conditional approval is normally the same day. If your loan is to purchase a property, we will issue a conditional approval letter to both the listing and selling agent.
Step 2: Truth in Lending. A Truth in Lending disclosure statement detailing your note rate and corresponding annual percentage rate will be provided to you. The note rate is the interest rate used to calculate your monthly principal and interest payments. The APR represents the actual interest rate paid over the duration of the loan and includes certain fees and compound interest. The APR is generally a higher rate than the actual note rate.
Step 3: Property is appraised. We will then coordinate the evaluation of your property, after which we will contact the closing attorney to prepare the title search and arrange a title insurance binder. We will provide you an email copy of your appraisal as soon as we receive it.
Step 4: Loan is approved. The underwriter will assess the property evaluation and corresponding loan documentation, including your pertinent information such as pay stubs, bank statements and W-2’s. After the evaluation, the underwriter will issue final loan approval.
Step 5: Closing date is set. Your loan officer will contact you to confirm the closing date and confirm any final details with you. We will also confirm the closing date with your real estate agent.
Step 6: Loan process is reviewed. Your loan officer will contact you and go over the closing conditions and request any documentation not received during the loan application process.
Step 7: Insurance is provided. At this point it is very important that you contact your insurance agent and provide the following information: sales price, closing date and property address. Please provide your loan officer with the agent’s name and phone number as well to ensure a quick turnaround.
Step 8: Loan package is sent to closer. The loan package will be sent to a closer who will organize the closing package and send it directly to the closing attorney.
Step 9: Final closing process is detailed. You will be contacted by the attorney who will confirm the closing date and establish the amount of the certified funds you will need to bring to the closing.