El Segundo Home Loan Process
See also Key Things to Know about the Loan Process
Finding Out How Much You Can Borrow?
Your maximum loan amount depends on many factors, including:
much you can afford for monthly payments.
appraised value of the property.
amount of equity in your home, if you're refinancing.
much money you have available for closing costs and a down
(if you're purchasing).
a loan and a lender that's right for you
Contact a lender that you have worked with in the past or
visit our local lenders page.
for a loan
Depending on the loan you choose, you may complete an application
online, over the phone or in a local branch.
can I speed up the application process?
how you apply, one key to getting your loan quickly is filling
in the application completely and accurately. It's also very
important to attach all the supporting paperwork required.
Use our Application Checklist to help.
Begin loan processing
To process a loan, the lender will go through a series of
steps. Being familiar with the process will help better understand
what happens on our side of the table and will make the process
far less stressful. After receiving your application, the
lender or mortgage broker will:
your application to make sure the information is complete
and consistent. A Home Loan Counselor may contact you for
additional information or clarification.
the information you provided and confirm that all necessary
documents are included.
your loan information in a process known as underwriting.
Underwriting is a major step in the approval process because
it evaluates your ability to comfortably make your loan
and review an appraisal of the home you are buying or
refinancing. The appraisal confirms whether the property's
value is in line with the purchase price and loan amount.
Understand that in order to finance
or refinance a loan the lender requires documentation
to verify and
substantiate your employment, credit and financial situation
to assure its investors that you have the
ability to repay the money. This documentation may consist
of tax returns, recent pay stubs, bank
statements, verifications of employment, deposit and rent
or mortgage, appraisal, purchase agreement,
divorce decrees, bankruptcy papers and any other information
the lender deems necessary.
happens at closing?
The actual closing process varies, but usually includes the following steps:
A closing agent (usually escrow officer) reviews the settlement sheet with you. This document
includes all the final costs for the purchase transaction or refinance loan.
You sign loan documents such as the mortgage or deed of trust, note and Truth-in-Lending statement.
For a purchase loan, you provide a certified check or cashier's check to the closing agent to
cover the down payment and closing costs (See who pays for what during escrow).
For a purchase loan, your lender gives a check for the home loan amount to the closing agent.
If the monthly payments will include amounts paid toward the payment of property taxes and
insurance, an escrow account is set up.
You receive the keys to your new home, along with copies of all the closing documents.