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Applying for a Mortgage - what happens next?

By
Mortgage and Lending with University Lending Group NMLS# 133950

So you've applied for a mortgage, signed a lot of forms and given your loan officer a check for your appraisal.  Signing loan applicationNow what comes next?  I know that it can be a confusing process, especially for first time buyers.  Let's see if we can make things a little more clear for you.

As soon as we've completed the loan application, I order your appraisal and title insurance. Then I hand your file over to my loan processor who "scrubs" the file, looking for any missed signatures, dates, check marks or documents.  It's like having a second pair of eyes on your file! We want your file to be perfect when it goes to the underwriter.  Then the processor orders an IRS transcript of your taxes for the last three years.  This is to make sure that what we have in the file matches what was filed with IRS.  Once the title insurance and appraisal have been received, your file goes to underwriting for approval.  

The underwriter verifies that everything on your application is supported by documentation in your file.  They examine the credit report very closely,  Then they study the appraisal and may also search recent sales and ask questions of the appraiser.  There are a lot of behind-the-scenes things the underwriter does to make sure that we are making great loans with no fraud involved. Once they have carefully gone over everything in the file, they will issue a conditional commitment.  That says that your loan is approved subject to getting more information.  

Then the file goes back to the processor so that she (or he) can gather up all the items requested by the underwriter.  At this point, you'll probably get a phone call or email request from her.  It's important that you respond as soon as you can so we can get your file back to the underwriter's desk.  When the processor has all the underwriting conditions in the file, she sends it back to the underwriter.  Hopefully at that point we will get the clear to close (three magic words) but sometimes the underwriter will ask for more information from you.

Once we have the clear to close, it's on to the closing department.  They prepare your mortgage documents and send them to the title company.  At that point I will forward those to you so you can review if you want.  The title company completes the closing statement. Industry insiders refer to that as a HUD - probably because The Department of Housing and Urban Development mandates the format of the form which all lenders nationwide use.  Once we have received the final HUD, I will forward that to you.  If you need to bring money to closing, it will need to be in the form of a certified check or a wire to the title company.

Keys to house

Come to closing with your check and your photo ID and be ready to sign your name MANY times!  If you're buying a home, you'll get the keys to your new home.  If you're refinancing, your loan will disburse after a 3 day waiting period and the payoff of your previous loan will be sent on its way! Applying for and closing a mortgage can be a confusing process, but your loan officer will be with you every step of the way to let you know what comes next!

 

 

 

 

Posted by

Peggy Wilson

License #13950

734.238.3MTG (684)

peggy@peggyloans.com