Time is of the essence throughout all phases of your home purchase. Successful and efficient progress is the key to a smooth and timely closing. Typically, 21-45 days is required to complete loan processing. The timeline does not begin until you have viewed and signed a complete loan application package and clearly communicated your intent to proceed with the loan.
When additional documentation is needed from you throughout the loan process, we will clearly explain what is required, and the deadline for the receipt of those items. In order to prevent any delay in the closing, please provide all additional requested documentation at your earliest possible opportunity, but no later than the deadline indicated. Your prompt attention is urgent and appreciated.
1. Get Pre-Approved
Submit your application and the documents needed to verify your income, assets, and debts, including thirty days of recent paystubs, last two years of W-2s, and two recent bank statements.
2. Home Search and Offer
Your Realtor will help you find the perfect home and write up an offer letter to the seller, which details the price you are offering to pay for a property and any applicable conditions.
3. Purchase Agreement
Your Realtor will write up the contract for you and the seller to sign. An option fee and earnest money deposit are generally required. This agreement will outline all of the required dates, deadlines, and contingencies.
4. Application and Disclosures
Your loan officer will have you review and sign a number of documents and disclosures, including your mortgage application and a Loan Estimate, which details the estimated costs of financing.
5. Home Inspection
If the offer is accepted, a home inspection is next. Home inspections are not required, but highly recommended. A home inspector will look for any issues or violations with the property.
6. Appraisal and Title
An appraisal (an estimate or property value) will be ordered and provided to the underwriting team. Your loan officer will select a title company to research the property title.
7. Homeowners Insurance
Proof of insurance is required prior to closing. Your first year’s premium must be paid in full and is usually paid at closing. Have your insurance agent contact your loan officer to ensure they receive the proper insurance binder.
8. Final Approval
Underwriting will review all the documentation necessary to approve your mortgage loan additional verifications may be necessary at this point. If all of the documentation is acceptable, you will be clear to close
9. Closing Disclosure
You will get a final breakdown of all costs and money required at closing. For closing, you will need government issued identification and a certified check to pay closing costs. This must be signed and acknowledged no less an 3 days before closing.
10. Your Loan Closing!
It’s closing time! Did you bring your government issued identification? Do you have a certified check to cover closing costs? During the closing, a representative from the title company will review all the loan documents with you. They will get signatures from both you and the seller. After all money is distributed, the deed will then be recorded with you as the new owner of record!