This page assumes you have a property. It will assume we have pre-approved you and revised most pertinent documents to determine the likelihood of obtaining financing. We would have also generated a Direct Underwriting approval, and we should have had received an Approved / Eligible status. This page will outline for you what you can expect from Bluecastle Lending once you are ready to move forward towards funding your loan.
Getting a Preliminary Closing Disclosure
We will attain a Preliminary Closing Disclosure (Prelim CD) from the title company you selected to handle your closing, so we can find out how much you are going to be charged and accurately will include their fees in your Loan Estimate. On the other hand, if you do not have a preferred Settlement Service Provider, we will place the title order with the title company we normally use. Their fees are accurately listed in our Loan Estimate tool.
Our Loan Estimate is very accurate and it includes all the fees that you will have at closing, It rarely changes at closing. A few things that will never change will be the interest rate (once locked), our origination charges (none), our underwriting charges (none), our processing charges (usually none unless we outsource it), our flood certification charges (none) and tax certification charges (none)
Providing your documents
Nothing can be done on the file unless we receive all your loan documents, and underwriting decisions cannot be reached without a complete set of those documents. If you take your time delivering documents, this will significantly delay your closing date.
We send you a link to our portal where you upload the documents, which are then sent to processing and then delivered to underwriting once the loan disclosures have been signed. Communication and prompt delivery of the documents are the key to a smooth closing.
You will receive, within 3 business days from your loan application an official Loan Estimate plus several other pages worth of different disclosures. We use digital signatures, which makes it very easy to sign from the convenience of your cell phone, work or home computer.
Paying for the appraisal
You will fill out a credit card authorization form and sign it, which will be given by Bluecastle Lending to the Appraisal Management Company. You will directly pay for the appraisal before closing. Usually, the cost is $425 for VA, $420 for Conventional loans, and $520 for FHA.
Submitting your loan to the lender
Once we have all the documents, we will send it to the Junior Underwriter for review. If there are documents that are missing, the file will be sent back asking for those documents. Incomplete files go into the “sleeping room” until they are complete.
Once the Jr. Underwriter deems to have a complete file without any missing documents, it is passed to the Sr.Underwriter to render a credit decision.
We will get, normally within 24 hours from submission, an Approval subject to Underwriting Conditions. As long as those conditions are met, the loan gets funded.
These conditions usually mean more documents that we need from you. Timely delivering these documents is crucial to get the loan back into underwriting. The Jr. Underwriter will not move the file forward until ALL the documents are received. The file goes back into sleeping mode until the documents are received, which at that point the file gets moved again to the Sr. Underwriter to render a credit decision. Most underwriters will have 24 to 48 hours to review the file and render that decision. This process gets repeated until we get a beautiful Clear to Close subject to Pre-Funding Quality Assurance.
Receiving the Closing Disclosure
Once we received the Clear to Close, and file has been checked for completeness and passed the Pre-Funding Quality Assurance, it gets moved forward to Scheduling, usually within 1 business day from the Clear to Close date.
Scheduling department will send the Closing Disclosure. Borrowers must acknowledge receipt of this document in order to be able to close. Current banking laws prohibit funding until at least three business days have passed from the acknowledgment day before being able to fund the loan
Correcting Errors in the Closing Disclosure, and finalizing all the numbers.
Usually the Closing Disclosure has several errors that between the Title Company and Bluecastle we get the lender to correct. Once everyone is happy and all the numbers are correct, the final Closing Disclosure is issued and the numbers can no longer be changed.
You will wire the amount listed in the Closing Disclosure to the title company. This amount will include all the fees. The title company will also receive the wire from the lender and will disburse to the seller and every other party their respective checks.
After signing documents for a while at the closing table, the package gets sent to the lender and upon receipt, it funds your loan. Congratulations! Your loan just got funded! Enjoy!