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Offer Accepted!The Loan ProcessStep 1: The Application The key to the loan process going smoothly is the initial application interview. At this time, the lender obtains all pertinent documentation so unnecessary problems and delays may be avoided. The realtor opens escrow with the title company at this time as well.Step 2: Ordering Documentation Within 24 hours of application, the lender requests a credit report, and appraisal on the property, verifications of employment and funds to close, mortgage or landlord ratings, a preliminary title report and any other necessary supporting documentation. Step 3: Awaiting Documentation Within one to two weeks, the lender receives the supporting documentation. When it comes in, the lender checks for any problems that might arise and requests any additional items needed. Step 4: Loan Submission Once all necessary documentation is in, the loan processor puts the loan package together and submits it to the underwriter for approval. Step 5: Loan Approval Loan approval generally takes anywhere from 24 to 72 hours. All parties are notified of the approval and any loan conditions that must be received before the loan can close. The loan approval is the beginning of the closing process. Step 6: Documents are drawn Within 1 to 3 days after the loan approval, the loan documents (including the note and deed of trust) are completed and sent to the title company. The escrow officer calls the borrowers to come in when the papers are ready for final signature. At this time, the borrowers are told how much money they will need to bring in to close the transaction. Step 7: Funding Once all parties have signed the loan documents, they are returned to the lender who reviews the package. If all the forms have been properly executed, the funds are transferred by wire. Step 8: The Recording When the title company receives the funds from the lender, they make lender’s security for the loan a matter of public record. They do this by recording the note and deed of trust at the County Recorder’s Office. It is at this point that escrow is officially closed. back to top Home Inspections…Do I need them?YES! Buying a home without doing a general inspection is a risky proposition. Major repairs on homes can amount to thousands of dollars. Plumbing, electrical and roof problems represent significant and complex systems that are expensive to fix.There are many inspections that can be done, everything from a roof inspection to soil and mold testing. The three most common inspections are a Roof( $140 approx.), Termite ($220 aprox.) and General Home Inspection ($300-$400). Home Inspections Help You Avoid Unpleasant Surprises A good home inspection is an objective, top-to-bottom examination of a home and everything that comes with it. The standard inspection report includes a review of the home's heating and air-conditioning systems; plumbing and wiring; roof, attic, walls, ceilings, floors, windows, doors, foundation and basement. Getting a professional inspection is crucial for older homes because age often takes its toll on the roof and other hard-to-reach areas. Problems can also be the result of neglect or hazardous repair work, such as a past owner's failed attempt to install lights and an outlet in a linen closet. A home inspection is also a wise investment when buying a new home. In fact, new homes frequently have defects, whether caused by an oversight during construction or simply human error. Education is another good reason for getting an inspection. Most buyers want to learn as much as they can about their purchase so they can protect their investment. An examination by an impartial home inspector helps in this learning process. Ask if you can follow the home inspector on his or her rounds. Most inspectors are glad to share their knowledge, and you'll be able to ask plenty of questions. Inspections usually take place right after signing a contract or purchase agreement with the seller. The results are usually available immediately or within a few days. The home inspector will review his or her findings with you and alert you to any costly or potentially hazardous conditions. In some cases, you may be advised not to buy the home unless such problems are remedied. You could include a clause in your purchase agreement that makes your purchase contingent upon satisfactory inspection results. If major problems are found, you can back out of the deal. If costly repairs are warranted, the seller may be willing to adjust the home's price or the contract's terms. But when only minor repairs are needed, the buyer and seller can usually work out an agreement that won't affect the sale price. back to top ClosingOnce you have done all your inspections and your loan has been approved, we can then remove our contingencies and then the waiting period begins. Sometimes this is hardest part since most buyers are quite anxious to get into their new home. This waiting period can be a few days or sometimes a few weeks. What are we waiting for??? As mentioned in the loan processes above, there are several steps that need to be accomplished before the closing. While the loan company is going though their steps, the Escrow and Title Company are going through steps of their own; collecting all the documents, including loan documents and other information regarding your purchase, and this is what we wait on. Part of this process includes; gathering all loan fees, appraisal and inspection fees, calculating county and city transfer taxes as well as any proration of property taxes and making sure all the correct documentation comes in and all the numbers match up. When everything has been accumulated, a Buyer’s Estimate of Closing Costs will be given to you the same day you sign your loan documentation. Once you sign loan documents we have only a few more days to wait for funding which is the day when all the money comes into the Escrow Company from the lender, along with the balance of your down payment. Once this happens the escrow can usually record and close the following day and then we can give you the keys!!!! A very exciting time indeed. back to top |
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The Money
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The Perfect Home
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The Offer
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Why Use A Realtor® When Buying A Home? |
Realtors Lic. #014701345 and Lic. #01808145 |
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