Understanding The Loan Process
Pre-Qualification: A request for an indication of the type and amount of loan for which you qualify. It does not constitute an application or a commitment to lend. At American Savings Bank, our residential loan officer can provide you with a free, no obligation prequalification analysis.
Loan Application: The mortgage loan application form is referred to as “Form 1003”. After receiving the required disclosures, a completed loan application includes all required supporting documentation from all applications such as income documentation, deposit and asset documentation, etc. in order to process the loan application. Allow our residential loan officer to guide you through the loan application process.
Loan Estimate: Provided no later than three business days after loan application, it is a required disclosure. The Loan Estimate is designed to provide disclosures that will be helpful in understanding the key features, costs and risks of the mortgage loan for which you are applying.
Pricing & Locking: Pricing represents the terms available to the borrowers in the form of loan interest rates and loan points. It is only a quote before and throughout the loan application process. Locking represents the terms that the borrower will receive at loan settlement; the rate lock commitment is based on a specific period of time in which the loan must close. Contact your loan officer for pricing before or during the loan application process. Your loan officer will also be in contact with you regarding locking which you may do when you submit a completed loan application, during the loan process or when the loan is approved.
Loan Processing: The period of time to receive, review, verify and approve credit, income, asset, subject property, title and other information required for loan approval. A fully executed 1003 loan application and required supporting documentation from all borrowers must be received in order to process the loan. Our residential loan officers are supported by a local team of mortgage professionals who may contact you during loan processing in order to obtain additional information or further clarification of your loan application.
Underwriting: The period in which the processed loan application is reviewed and a loan disposition is made. If a loan decision requires further information, our mortgage professionals or your loan officer may contact you.
Final Loan Approval: The period in which the borrowers and the loan application have met all underwriting guidelines and credit policy. A conditional approval could be made and conditions may need to be met prior to scheduling a loan closing. Our mortgage support team will contact you on how to satisfy any outstanding conditions.
Closing Disclosure: Provided no later than three business days before the closing, the Closing Disclosure is designed to provide disclosures that will be helpful in understanding all of the costs of the transaction. This form replaces the HUD-1 Settlement Statement and Final Truth-in-Lending (TIL) into one form as of October 3, 2015.
Loan Closing: The execution of the mortgage documents and other escrow documents during the scheduled loan document signing date. This occurs after your loan application is approved and mortgage/escrow documents have been prepared. The Closing Disclosure form must be acknowledged by you at this time.