Iowa Public Television

Challenge Question Number 1 for Senior Vice President #1116

Clearly describe what you expect from the students:
You have a $50,000 loan request. What steps should be taken to qualify, process, and approve and close this loan in a timely manner?

In order to give the teacher some guidance in evaluating the student's project(s); list some tips that may help to assess the student's work:
Students should check with local lenders and bankers for input. The correct steps are as follows: Have the applicant fill out a residential real estate loan application. Run a credit report.If income and expenses meet qualifications and the credit report checks out as the applicant pays his obligations, a copy of the purchase agreement is procured and an appraisal ordered. Once these items are completed a title opinion is ordered on the property and a closing date is more firmly set. Ten days prior to closing, a flood certification should be completed to ensure that the property is not in a flood zone. A HUD settlement statement needs to be prepared and reviewed at least one day prior to closing. The loan is then closed and funds advanced for the purchase.