Below you will find the La Jolla Loans lending process. Even though these are laid out in neat, orderly, sequential steps, the reality is that many of these steps are often combined into one very fast sequence of events, especially in closings of less than one week. So again, as with everything we do at La Jolla Loans, these are more like guidelines than rules.

Step One – Borrower/broker calls La Jolla Loans and outlines the loan scenario to loan agent and submits an executive summary of the loan request if available. (May also fill out short form loan summary online.)

Step Two – Upon receiving sufficient information to do so, loan officer at La Jolla Loans performs a quick analysis of the deal looking at basic criteria such as location of property, loan to value, comps or an appraisal, etc., and provides a verbal ballpark estimate on fees, rate, term and loan conditions.

Step Three – If the terms are acceptable and the borrower wants to move forward, LJL loan agent forwards a list of items necessary to process the loan along with a letter of interest stating the terms and conditions in writing.

Step Four – The collection process begins of all documents necessary for underwriting the loan.

Step Five – La Jolla Loans immediately reviews the document package and loan file and performs due diligence including local market comps. The loan officer verifies that the borrower’s exit strategy is sound and can be executed as proposed. Additional documentation or information may be requested at this stage, depending on the borrower’s situation and completeness of the document package.

Step Six – La Jolla Loans makes arrangements with the borrower to physically inspect the property and perform some additional local market research. A loan officer then physically inspects the property, meets the principles, and visits local comparable properties in the area. Usually at this point the only thing that keeps the loan from moving forward is a gross discrepancy between what was submitted on paper and in photos or comps from what was physically inspected at the site. The due diligence up to this point has been thorough and this is a final step in the underwriting process.

Step Seven – Once the inspection is satisfactory, loan docs are drawn up and the loan goes to closing. The closing time varies based on the situation but can be in as little as one to five days.