In-House Financing

The application process always begins with an application. With this type of loan, a short-form application is taken. This form provides only essential information on the property and borrower(s).

Once the application is completed and signed, the information provided allows us to order a limited credit report, open escrow with a title company and order an appraisal, if necessary.

The in-house loans can typically be closed very quickly. The step which hinders immediate funding of the loan is the title report coming from the Title Company. Typically, if the property resides in Maricopa County, Arizona, we can receive the report in 5 business days. If the property is located outside Maricopa County, this report can take up to 10 business days. Be advised, CSI Mortgage can only originate loans on property within the state of Arizona.

Following the initial signing of the application, CSI Mortgage will issue preliminary documents within three days. These documents include the Good Faith Estimate of Costs, Federal Truth in Lending document, if necessary, the Equal Credit Opportunity Act Notice, the Servicing Disclosure Statement and an Advance Fee Agreement.

During the period when all necessary information is being gathered, a lender is put in place to fund the loan. The lenders for these loans are typically private individuals who choose to invest their money in loans backed by Arizona real estate.

The private investor will evaluate the information provided and look at the property personally. From this aspect, the better the situation, the easier it is to find an investor, quickly. For example, single family residences will always be easier to finance than raw land. The value in a home or building is more easily seen (no offense land owners, just an observation). However, CSI funds land loans frequently; simply, a lender who can identify the inherent value of the land is necessary to close such a transaction. In addition, the condition of the property has much to do with placing a loan. A potential investor will be much more likely to lend on a well-maintained property than a poorly maintained one.

Once all documentation has been obtained and a lender has been found, loan documents will be drawn. Once the loan documents have been signed, one of two situations present the next step. If the property is 1-4 family and owner occupied, the borrower must wait until the 3 day right of recission is up before the loan can close and loan proceeds can be issued. If the property is not 1-4 family and is non-owner occupied, the funds will be available immediately following the proper recordation of the documents by the Title Company.

Conventional Financing

Conventional financing tends to take longer to close than in house loans because each borrower must qualify for the loan. Conversely, our in-house loans are qualified almost purely on the basis of the property.

The first step is always the loan application. Conventional loans require a full 1003 application. This application asks extremely detailed information pertaining to the property and borrower.

Once the application is completed, the process can begin. A Title Company is contacted to prepare a title report, a real estate appraiser is contacted and a credit report is ordered.

Within 3 days of the application, the borrower is issued preliminary loan documents including the Good Faith Estimate of Costs, Federal Truth In Lending Disclosure, the Equal Credit Opportunity Act Notice, Servicing Disclosure Statement and an Advance Fee Agreement.

Once all the preliminary documents are signed and returned by the borrower, they are packaged and sent to a wholesale lender for approval. It usually takes 1-2 days to get an approval. The approval form will also contain a list of conditions to be satisfied for this loan to be closed.

With all the necessary services working in preparation for the closing, the Borrower is given a list of information which needs to be provided to the wholesale lender. These documents can include tax returns, bank statements and, in some cases, legal documents pertaining to settlements or agreements.

At this point, CSI Mortgage has gathered the information from the Borrower, Title Company, appraiser and Credit Reporting Agency as well as a few processing documents which are CSI's responsibility to complete. This is the final package which gets sent to the wholesale lender. If all the loan conditions are satisfied, CSI Mortgage can request documents be drawn.

Once the documents are in hand, the borrower will sign them in front of a notary and give them back to CSI and then on to the Title Company. If the property being financed is an owner-occupied residence, there may be a 3 day right of recission imposed. This is a Federal requirement, giving Borrowers one last opportunity to cancel the loan, even after the final loan documents are signed.

The right of recission completed, the Title Company records the necessary documents with the County Recorder and the transaction is complete. The last item is for the Title Company to cut the appropriate checks from escrow.

In all, this process takes an average of 4 weeks.