The Process

The time it takes to complete the loan process varies for each application. Here is a list of the stages required to process a mortgage. Remember that completing your application accurately and fully will help speed the process.

Processing

When you apply, a loan processor will collect documents and verification to support your request for a loan. The time in processing will vary depending on the type of loan and how quickly the processor receives the documents needed. You can begin this process while you are searching for your home with your Realtor. Much of the processing involves help from other sources, such as:

Credit Verification — We'll request a credit report through credit reporting agencies to verify your outstanding debts and payments history.
Income Verification — In addition to the documents we request from you, we'll ask your employer to verify your income.
Asset Verification — We'll ask to see your latest bank statements to confirm that you have the funds required to complete your transaction.
Previous Housing Verification — We'll request the history of your rent or mortgage payments from your lender or landlord.

Underwriting

Once an application is processed, our office will submit the complete package for final review to an underwriter. The underwriter compares your loan request to the guidelines of the lender or its investors. The underwriter then issues a decision on your application based on a number of factors. The underwriter may require additional information either from your Agent or from you.

Closing

Closing occurs on that day when you sign all the legal documents necessary to transfer the ownership of the property to you. Your Realtor will set up your "closing" with Pennsylvania First Settlement Services or Penn Stroud Settlement Services our affiliated title company and members of our Independent Family of Home Buying Services.

Insurance

Keep in mind that you will also need to have insurance coverage at this time. Specifically, "Title Insurance" and "Homeowners Insurance."

Title Insurance

Title Insurance is perhaps one of the most misunderstood of all insurance types. Title Insurance insures you for what has happened in the past. Title insurance guarantees the policy holder (you, the individual or the lender who holds a mortgage on the property) marketable title. In other words, if you have title insurance, you are insured that your property can be conveyed to another without defects or encumbrances.

Many consumers erroneously believe that if a thorough title search is conducted on a piece of property then title insurance is not needed. The purpose of title insurance, however, is not to insure for known defects but to insure for the unknown.

While title claims are rare, they tend to be very large monetarily due to the value of the underlying real estate. Also, the premium for the title insurance is only paid once, and will protect the homeowner for as long as he or she owns the property, and in some cases longer.

Title insurance rates are set by the state's Department of Insurance. By law, a title company may not charge more nor less than the rates promulgated by the department.

Both your Realtor and your Loan Officer will arrange for title insurance when you enter into the Agreement of Sale to buy you home.

Homeowner Insurance

When you purchase a home you need to protect your investment along with the investment of the mortgage company. You will need to buy property or "homeowners" insurance to protect your investment. The lender's interest in your home will be protected when you name them on your homeowners policy as "additionally insured." Proof of this type of insurance coverage will be required when you finalize your mortgage at the mortgage closing. Typically, the coverage should be for the appraised value of the home.

Don't have time to shop around for the best rates? Don't worry! We also have insurance carriers within our Independent Family of Home Buying Services too! Our staff will automatically get you a free quote from one of our affiliated companies, Pennsylvania First Settlement Services or Penn Stroud Settlement Services so you'll be sure to get the proper coverage for your new home at a rate that fits your budget.

Program terms and conditions are subject to change without notice. Not all products available in all states or for all loan amounts. Other restrictions and/or limitations apply. Home Equity products are offered in AR, CA, CO, CT, DE, FL, GA, ID, IA, IL, IN, KY, LA, MD, MA, MI, MN, MS, MO, MT, NJ, NC, OH, OK,.OR, PA, RI, SC, TN, UT, VA, WA, WI & WY. Second Mortgage loans not available in: AR, ID, MN, MT, OK & WY. Second Mortgages originated in PA as NLC, Inc. DBA First NLC, Inc. and in TN as NLC, Inc. First NLC is authorized to make purchase money mortgages in TX. Licensed by the Department of Corporations under the California Residential Mortgage Lending Act. Georgia Residential Mortgage Licensee; Illinois Residential Mortgage Licensee; Massachusetts Mortgage Lender License No. ML1385; Licensed Mortgage Banker - New Jersey Department of Banking; Licensed by the Pennsylvania Department of Banking; Licensed Rhode Island Mortgage Lender. First NLC Financial Services, LLC is headquartered at 700 West Hillsboro Boulevard, Building One, Deerfield Beach, FL 33441