Understanding Your Home Loan Application Process

Commonly Asked Questions and Answers

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Understanding Your
Home Loan Application Process

STEP 1. Your application can be completed in person or over the telephone. Various disclosures and authorizations will be presented which require your signature(s). A non-refundable application fee of $350 is due at the time of application. This fee covers your appraisal and credit report. Please make your check payable to Frontenac Bank. Your file will be immediately placed into processing.

STEP 2. Once the information is received by Frontenac Bank, additional disclosures (Good Faith Estimate, Itemization of Amount Financed and Truth-In-Lending) are sent out for your signature. If you have any questions on this paperwork, please contact our office.

STEP 3. Once the file is placed in process, we will request the credit report, appraisal and flood letter. If this is a pre-approval or if we do not have copies of an accepted contract, we cannot order the appraisal or flood letter. These items will be ordered as soon as we have an accepted contract.

STEP 4. If you are working with a Realtor, they will be arranging your inspections (home, termite, gas, septic, etc.). We will need to know when these are completed. We may require copies of these certificates. Some municipalities also require inspections/occupancy permits. Your Realtor should be able to make the necessary arrangements for these items.

STEP 5. At this time, you should arrange for homeowner's insurance coverage. If you have auto insurance your agent should be able to provide a competitive quote for you. If you are uncertain whom to select, your Realtor can suggest an insurance company or we can suggest someone to use. Your insurance must be in place prior to closing. We suggest you have the policy in place a minimum of two weeks prior to your closing date. In order to speed up your closing and final figures, we would like to have the agent's information and total premium amount prior to your loan approval.

STEP 6. Another form of insurance is title insurance. A title insurance policy is issued to protect both you and the lender against any future claim against your new property. Title insurance is not optional. In the event of a purchase, the Realtor is responsible for ordering the title work (for a refinance, we will order the lender title for you). Usually, your Realtor will suggest a company to use and are likely to receive a competitive rate for you. If you prefer, you are free to choose any title company you wish. A clear title commitment must be issued in order to have a clear loan approval. The title company is also responsible for reconciling your final figures so you will know how much you will need at closing and they are also responsible for properly disbursing funds.

STEP 7. We will be in contact with you as much as necessary to complete your file's processing and approval. You may contact your Personal Banker for any additional updates you may have on your file. Your Personal Banker should be able to answer any questions on the status of your file and let you know how soon you can expect your final figures. Please contact your loan officer for any rate or program questions.

STEP 8. Please use this guide as a resource so you will know exactly where we are in your approval process. However, it is only a guide. If you have any questions or are not clear on anything, please contact your Personal Banker or your loan officer.