After You Apply
Once your application has been completed, you will receive a few disclosures to review, sign and return. Disclosures will be provided to you electronically. Make sure to read disclosures completely and pay special attention to the Loan Estimate document, as this discloses the terms and conditions of the mortgage, including the Annual Percentage Rate (APR) and other charges. You have 10 days to review this document and decide if you wish to accept our offer.
All the information gathered from your loan application will be put into one file, including: W-2’s, tax returns, bank statements, and paycheck stubs. If you are self-employed, we may ask you for a few additional items to provide. For a complete list of items that may be requested, check out the Borrower’s Checklist.
A Few “dont’s” to consider during the mortgage process:
• Don’t make any large purchases!
• Don’t make any major life changes, like changing jobs or co-signing on your kid’s first auto loan.
• Don’t apply for new credit of any sort, like a credit card. This can affect your credit score, which might be the deciding factor between getting approved or denied for your mortgage.
While not required, it is recommended to get a professional home inspection, because it will identify any existing problems that the home or property might have – major and minor. It is a good idea to be present during the inspection so that you can ask questions and become immediately aware of any existing problems.
Your loan file will be reviewed to ensure it meets qualification guidelines, and a final decision will be reached about your loan approval. During this stage, additional information and documentation will be obtained.
A rate lock can occur at any time during the processing and underwriting stage; however, your interest rate must be locked prior to final approval from the Underwriter. Once locked the loan’s interest rate cannot change. Your Mortgage Banker will guide you through this process to help you lock in at the best rate.
During Underwriting, your Mortgage Banker will set an appointment for a home appraisal. The home appraisal ensures that the home you are buying is worth the sales price of the home. A local home appraiser will visit the home and compare it to recent “like” home sales in the area to determine the value of the home. Once complete, we will send you the full appraisal report for your records.
Your Mortgage Banker or Loan Processor will need to receive from you all the necessary types of insurance. This includes homeowner’s insurance and flood insurance (if applicable).
Choosing Your Closing Attorney
You will have the opportunity to choose your preferred closing attorney. Your Mortgage Banker will be able to assist in the selection if needed.
To prepare for closing, your Mortgage Banker will email the Closing Disclosure to you. You must acknowledge your receipt of the disclosure at least three days prior to the closing date.
Prior to closing, your closing attorney, title company or escrow company will provide and review with you a final Closing statement, outlining the final, total closing costs you must bring to closing. Many sellers do not accept personal checks, so a certified check is recommended.
Ensure All Conditions are Met
Before closing, be certain that all conditions you specified in the sales contract have been met, and prior to signing any documents, make sure that all the information is correct.
Your loan is approved, the Closing Disclosure is signed, and you have your closing cost ready. The final step is closing day! The closing typically takes 1-2 hours. Anticipate signing several documents at closing, and prior to signing any documents, make sure that all the information is correct. The three important documents you will sign: the promissory note, which outlines that you promise to repay the loan under the agreed upon terms; the mortgage also known as the deed of trust; and the deed. Check out tools and tips on our When You Close webpage.
You're a Homeowner
Enjoy making your new house your home!