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Module 4
Steps for Buying a Home
Getting the Loan
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The Loan Approval Process

The Different Steps of the Loan Approval ProcessThere are several people and many different steps in the loan approval process. You first met with a loan consultant who took your application and described loan products appropriate for you based on your initial pre-qualification. The consultant then passes the file on to a processor for verification and documentation of all information. Next, an underwriter receives the file and makes the “approved,” “not approved” or “approval with conditions” decision. The approved package is sent to the lender’s closing department for preparation of the loan documents, which are then delivered to the closing agent. The following table shows who does what, why and approximately how long it should take.

Download an Explanation of the ProcessTo see who is involved in the loan approval process and how long it takes to become approved, download the Loan Approval Process pdf.

How to Prevent Delays
Remember, providing as much documentation as possible when you meet with the lender speeds up the process. Responding to any further requests for information from the processor as quickly as possible will prevent any unnecessary delays.


Carefully Review All Documents
After you have received the loan information and documents back from your lender, carefully review the documents and make sure the name, phone number, email addresses and all other details of the account are correct and what you agreed to. Talk to your lender if you have any questions or need to correct any mistakes on your loan documents.

Locking In Your Rate edge
Don’t forget to request a lock-in of your loan interest rate as soon as your offer is accepted. This protects you in case the market interest rate goes up during the loan process. If rates should go down, ask your loan consultant if you can receive a lower rate. Some lenders offer an interest rate buydown option. Lock-ins for a short period of time are usually free, but there may be a charge to lock-in for a longer time.

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  Countrywide Home Loans, a division of Countrywide Bank, FSB is an Equal Housing Lender. © 2007 - 2008 Countrywide Financial Corp. Trade/service marks are the property of Countrywide Financial Corp., and/or its subsidiaries. All rights reserved. The content of this website is provided for the convenience of our readers and is for informational purposes only. Readers are encouraged to use the content of this website to supplement their knowledge and to also seek out other reliable sources of information prior to engaging in the home financing and home buying processes. The information featured herein is intended to be accurate and we will make efforts to keep this website updated. However, due to the rapid changes occurring in the programs, products, services offered within the home financing industry, we do not guarantee the accuracy of the information presented. Countrywide is not responsible for the contents of, or products or services offered on, third party Web sites and provides links to such sites solely for your convenience. This is not a commitment to lend. All rights reserved.