Ideally you have been pre-qualified by a mortgage lender, in order to have negotiated the best possible purchase price.
You can then decide to continue the loan process with this lender, or to select another. There are numerous lenders and loan programs available. Phyllis Harb & Co. recommend that you “shop” with a variety of lenders to determine that you obtain the loan that best suits your needs. We can assist you by giving you names and telephone numbers of loan officers to contact. Remember that you must turn in the completed paperwork and obtain both verbal and formal loan approvals within the time frames agreed to in the Purchase Agreement.
When you meet with the lender’s representative, be prepared to have a variety of information available, most importantly account numbers and addresses for all financial institutions. Lenders and loan programs vary as far as documentation requirements. In many instances, you will need to provide W-2’s, and a current pay check stub, or if self employed, two years Federal Income Tax Returns.
The Lender will order a credit report, appraisal and any other documentation deemed necessary in order to approve your loan. Be certain to ask questions. Phyllis, Natalie, Lisa, the lender, and the escrow officer will be in close contact with you and each other during this process.
Once your loan is approved, the lender will prepare loan documents (the bank’s contract). When they are ready, these documents are typically sent to escrow, as certain items need to be notarized. At this time, your escrow officer will contact you to set up an appointment for you to sign these documents. The escrow officer will also give you the amount of your down payment and closing costs needed to complete the sale. They will request that you bring a cashier's check or wire transfer funds 48-72 hours prior to the close of escrow.
Once the documents and evidence of homeowner’s insurance on your new home are received by the lender, they should be in a position to fund the loan (write a check). At this point, you are hopefully only waiting for home ownership to occur, and no additional paperwork will be required. Typically, the bank issues the check, and the deed (transfer of title) is recorded with the county recorder on the following day. Upon recordation of the deeds, you have legal ownership of the property.
Congratulations, you are the new owner!