01:Loan Approval and Closing
Your first mortgage lender will be responsible for managing the joint loan approval and closing process (for lender and City) on your behalf. Any questions you might have regarding the status of your City loan should be directed to your lender. Please remember that your lender will be working closely with the City to expedite your loan request. Do not contact the City directly for loan status.
Summary of Joint Loan Approval and Closing Process
- Contact first mortgage lender of your choice to prequalify for bank loan (see preapproved lender list).
- Contact City to obtain an inspection certification (Attachment A). This involves unit inspection and proof of occupancy. (You will be contacted within three business days to set up an appointment.)
- Submit all required first mortgage lender and City forms to the lender to commence underwriting and verifications.
- Submit notification to City (Attachment G) that loan application has been submitted to Bank.
- Lender issues commitment.
- Lender forwards completed loan package to the City for review (typically four to six weeks from submittal of application materials).
- City reviews lender loan package for borrower eligibility and underwrites City loan amount (typically two to three weeks from receipt of completed lender loan package).
- City issues commitment to borrower (with copy to lender).
- Buyer and seller’s escrow company will coordinate the simultaneous closing of the City and lender loans.
- Preparation of City loan documents to be handled by City staff (typically within a week of City commitment letter issuance).
- Upon receipt of executed loan documents from escrow, City funding can be processed and scheduled (typically within two days from receipt of loan documents).
Because the above timing is tied so closely to Borrower responsiveness, complexity of the transaction, turn-around time for incomplete information, and quality of the lender loan package, time frames for funding specific loans vary greatly. However, most loans have funded within six to nine weeks from City receipt of the lender loan package.