This page assumes you have already found a house, and you have it under contract. 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 under contract (found a house and you and the seller
signed a purchase agreement), and how the loan process works
Getting a Preliminary Closing Disclosure
We will attain a Preliminary Closing Disclosure (Prelim CD) from the title company that
will be handling your closing, to know what fees they will be charging you and
accurately will include them in the Loan Estimate.
Our Loan Estimate will be very accurate and it will include all the fees that you will have
at closing, and rarely changes for the worse on closing date. 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 documents, and underwriting decisions can not 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 dropbox folder invitation into which you will upload all the requested documents, and you will
see the file named “Documents needed” which will outline all the documents that are still outstanding and the
notes in the file as to what has been done, whom we spoke with, date and time, etc. Communication and prompt
delivery of the requested documents are the key to a smooth closing.
You will receive, within 3 business days from your loan application a Loan Estimate plus several pages worth of
different disclosures. Within those disclosures is our affiliation with Housemart Realty (same owner). They will
be sent via electronic means and you will have to digitally sign indicating your intent to proceed.
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 $525 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. Almost 100% of the time they will ask for more documents.
We will get an Approval on the loan subject to Underwriting Conditions. This is a document with a long list of
documents that will be needed before the lender fund the loan.
Timely delivering these documents is crucial to get the loan submitted back to underwriting. We will upload them
as soon as we receive them however, the Jr. Underwriter will not move the file forward until ALL the documents
are received. Once that happens, the file gets moved again to the Sr. Underwriter to render a credit decision.
Normally most underwriters will have 48 hours to review the file and render that decision.
Almost always a new set of documents are requested, which are derived from the second set of documents
provided. This process gets repeated with every time less and less documents requested until we get the
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 triple 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. According to current banking laws, until at least three business days from the
acknowledgement day have passed we will not be able to close.
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. This is a back and forth process for a about a day or two. Once everyone is happy and all the
numbers are correct, the final Closing Disclosure is issued and the numbers can no longer be changed -
usually one day prior to closing date.
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.
Congratulations! Your loan just got funded, and you received your keys! Enjoy!