Lending Process

Funding Your Dream Home

The experience of buying a home loan can feel overwhelming, especially for first-time home buyers.  But the more you know, the less daunting the task will seem. At TexStar Lending, our Mortgage Specialists are here to assist you throughout this process. We call this process home loans made easy.

Here’s a simple outline to help you understand our process. Use it to educate yourself and build up your confidence as you launch into the home-buying experience.  If you have any questions about the process, please e-mail questions to our Mortgage Specialists at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . To speak with a TexStar Mortgage Specialist directly, please call 866-563-7021.

Application Process
• A Loan Consultant is contacted and all application information is disclosed. Any questions you have will be addressed at this time.
• Upon approval, your credit report will be obtained.
• An application and disclosures will be signed. The disclosures will include your good faith estimate and truth-in-lending statement.
• A pre-approval letter with conditions will be drafted and given to you to review.
• You may begin your search for your new home.

Home Search
• One of our trusted realtors will assist you in finding your home or you may use a realtor of your own choosing.
• After you find your home, a contract is written.
• Earnest money is paid to validate the contract.
• Although not required, we recommend a home inspection be performed.
• An appraisal is paid in advance to the lender or to the appraiser.
• Upon your request, the mortgage rate gets locked.

Loan Processing
• The following items are ordered:
• An appraisal
• A survey (if necessary) 
• Title to the property
• An insured closing letter
• A termite inspection (if necessary)
• Verification of Rent/Mortgage
• Verification of Employment
• Verification of Funds to close
• Verifications are sent to credit bureaus to clear any discrepancies.
• Documentation is provided by the client to clear any questions.
• Taxes are certified with the title company.
• Insurance quote acquired by homebuyer. (Generally paid once loan closes.)
• Mortgagee clause is provided to the insurance company and a declaration page is created.
• Realtor/title company/builder should transfer information about any homeowners' association or condo dues to the mortgage company.
• All ordered documents will arrive and are reviewed by processing and the loan consultant to confirm all information is the same as information provided in the loan application. The documents must meet the guidelines of the loan program, and a determination must be made as to whether or not more documentation is needed.
• Any changes to the documentation above that require attention are relayed to the necessary parties.
• The loan is sent to underwriting for approval once all necessary documentation is obtained from the borrower.

Underwriting
• Underwriter will verify all documentation provided by you and the Underwriter’s decision will be one of the following:
• Approve the loan with conditions,
• Underwriting will request additional information
• Suspend the loan,
• Loan is not denied, but additional documentation is required to put in approval status
• Deny the loan, or
• Underwriter determined loan does not meet minimum requirements
• Clear to close.
• Once conditions are cleared, the loan is ready to close.

Closing, Signing and Funding
• A closing date is set and the closing department draws closing documents.
• The closing department orders the wire amount for the loan and sends closing and funding conditions to the title company.
• The title company downloads all documents and prepares the HUD-1 settlement statement (financials of the loan).
• The closing statement is reviewed to make sure all figures are accurate.
• The final figures are relayed to the homebuyer and the homebuyer will obtain a cashier’s check for the amount required for down payment and closing.
• On the day of closing, the wire is sent to the title company.
• The closing takes place at the title company.
• The title company notarizes all forms and executes all documents.
• The executed documents are sent to the funder who will make sure all closing and funding conditions are achieved.
• Once conditions are verified, funds are released.

To begin your lending process, simply contact a TexStar Mortgage Specialist at (866) 563-7021 or apply now with our easy online application.