Once all parties have agreed to the purchase price and terms have been signed, there is an executed contract, which becomes the foundation of the new mortgage. Within three general business days after application you will receive a Loan Estimate, which explains the costs and risks of the mortgage. There are now three steps which need to be completed in order to proceed with the loan.
Decide on a loan program.
Gather all personal documentation.
Sign all necessary loan documents.
There are three major steps that are accomplished between your application signing and closing your loan.
Appraisal – An appraisal is an opinion of the property’s value and is necessary to close your loan. An appraisal will be ordered on the property to be sure that you are paying fair market value.
Title and Escrow – The title company will generally order these services and then forward the findings to your mortgage company for the closing package.
Underwriting – Each loan will be sent to an underwriter who reviews the application, supporting documentation, financial information, sales contract, appraisal and title to ensure all necessary criteria and regulations are met.