Processing Loan Application
One of the most nerve-wracking parts of the home transaction process is waiting for a loan application to be process. The processing loan application cycle is a tense experience that can lead to feelings of ballyhooed chagrin. However, processing a loan application simply refers that a loan source makes sure that all of the required documentation has been included in the application and that the condition stated in the preliminary approval have been met. Although this process may seem to be an arbitrary one, there are several federal laws that protect the applicant from unfair practices. Such laws as the Equal Credit Opportunity Act (ECOA), the Fair Housing Act, and the Fair Credit Reporting Act (FCRA) empowers the applicant with the right to receive certain credit information while strictly barring discrimination during the application process.
Begin The Process
Once your loan application has been completed, the mortgage broker or lender has to act upon your application immediately. Within 30 days after receiving the completed loan application, the loan application has to be completely processed. By the end of these 30 days, you should have been notified by your loan source about whether or not the application has been accepted. In instances where the loan application has been rejected, the loan source must provide documentation stating the specific reasons why your application has been denied. In this documentation there is also listed the federal agency who you can talk in instances where you believe that your loan application was rejected on discriminatory grounds.
Additionally, if the loan application had been rejected solely on the grounds of information contained in your credit report, the statement stating rejection will also provide information where you are able to obtain a free copy of the credit report. As the loan application rejection has to state whether or not the decision was made solely on information contained in your credit report, this document is a valuable resource. You are able to dispute the accuracy or completeness of any information contained in your credit report and the credit reporting agency that had prepared this document must investigate your claims free of charge. They also have to notify you of the results of the investigation.
Additionally, part of the loan processing procedure is that the loan source needs to obtain information about the value of your home and whether this is enough to secure the loan. An appraiser is usually hired by the loan source to measure the value of the home. You are legally entitled to receive a copy of the appraiser's report if you request it.
