Realestate Advice: The Loan Organization Process

by Hawwao Wajed

“Happy Mothers Day” this month with a Heartful of Love!!

Well here we are again.  “Congratulations” your purchase offer has been accepted and signed by all parties!  So I guess you’re wondering what comes next… Ok so let’s get started.

Your realtor will submit the contract and all signed documents to your attorney.  The purchaser and seller Attorneys will review the contract, issue an “Attorney Approval” providing all details are acceptable.   

Loan Officer ~ Mortgage Application 

Items to be submitted: 

*Two years current W2 tax returns

*Two month current bank statements / other verified funds

*One month current pay stubs / other forms of verified income 

*Other items may be required 

*During this time the loan is submitted with all of the above information

Underwriting / Processing:

All of the items as stated, are submitted for “Underwriting” at the lending bank.   Should there be any need for additional information, the loan officer will advise you on the details.  Be mindful to respond as soon as possible for your loan to be processed on time.

Here are some items the underwriter has to review:

*The sales contract

*Income

*credit report

*funds

*appraisal and all other items to determine an approval.  

Appraisal:

The purchaser will pay for an appraisal that is ordered by the lending bank.  It is used to review the ” value” and “condition” of the property being financed.  The Appraisers will focus on other properties that have recently closed as comparable: closed price, size, location. style and other details. 

If there are any concerns cited, they will be disclosed to the loan offer for review with the purchaser and both the agents on the transaction.

Commitment Letter: 

Once approved by the underwriter, the commitment letter is processed.  It will be issued to the purchaser, their agent and attorney.  This letter discloses: Purchaser information, type of financing, amount(s) and any items that may require more paperwork, explanations and other details.

Once issued, all items have been satisfied if any, the underwriter will “release the loan clear to close”.

Well this has carried you to the final chapter to close: 

The Agent /Loan Officer will prepare you for these steps 

~Purchase of homeowners insurance on the property; must submit proof prior to closing to your attorney

~Title Insurance is ordered by your attorney:  Coverage protects the owner as long as they own/or have an interest in the property.

~Search and Survey:  The search will identify ownership and liens on the property, any current and previous owners.  The survey shows the layout of the property~ dimensions and any encroachments that may require further review.  These are usually ordered by the seller’s attorney. 

~The “final walk through” with your agent will be scheduled at most 24 hrs before the closing date.  The purpose is to make sure the home is still in the same condition as when it was viewed.   Hopefully all is good!

~All parties will be contacted for the closing date and location

~Funds for closing will be disclosed (3 days notice) in advance ~For your closing: 

  Certified funds, identification and homeowners policy, along with other items as requested by the Attorney.

    The mortgage and the loan process includes you and many professionals to make it happen!

   You are now closed and “WITH KEYS ~ CONGRATULATIONS”

 It’s A Great Time to Market& Locate a New Home!

Hawwao Wajed / Real Estate Salesperson~Notary 

askhawa@kw.com