The Loan Process
There are FOUR steps to the loan process:
1. Loan Application
The application takes about one hour. It is used for the purpose of obtaining information needed to make a decision on your loan, either through automatic or manual underwriting. The process is usually automated and it takes just a few minutes to run through the automated system to get an approval.
Automated approvals will generally takes into consideration credit scores, housing and debt ratios which are calculated based on how much your income is against your housing expense and debts, and how much cash you are putting down and how much cash is left over after the closing.
The automated approval will tell us what to collect from you, however, the following information will be normally required to support the information that you have given to us on the application:
- Two years residency
- Copy of most recent pay stub
- Copy of most recent 2 years W2
- List of current creditors names, account numbers, balances and monthly payments
- Copy of complete Final Judgment Decree papers (if applicable)
- Copy of complete Bankruptcy & Discharge papers (if applicable)
- Check for appraisal and credit report
2. Submitting Loan to Underwriting
Once we have received the information from the above items, we will submit your loan along with the appraisal and title work. This process normally takes approximately three weeks. The underwriter will make sure that the information matches the application and the automated approval and give a final underwriting approval.
If the loan is turned down or the file has been submitted as a manual underwrite because of certain circumstances, it will be reviewed by our underwriting supervisor for job stability, reserves and credit, along with taking the credit score into affect.
3. Prior to Closing
An insurance binder and paid receipt faxed to us will be required at leased five days prior to closing. Be sure to include mortgage clause reading as follows:
River City Mortgage Corporation and/or its assigns
1895 Plaza Drive, Suite 250
Eagan, MN 55122
4. At Closing
The following will be needed at the time of closing:
- Conditions of your loan approval if there are any.
- Cashiers check made out to yourself in the amount that your need to close. Please check with your loan officer or processor to confirm this amount. The purpose of the cashiers check, if for some reason your loan does not close, you can endorse it back to yourself. Also, if you loose the check, you are the only one that can cash it.
- Last ten years of residency
- Identification for each person that will signing
- Your request for owners title insurance
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