This is the final stage of the process before you close. The mortgage underwriter reviews everything and issues an “Approval with Conditions”. They issue a list for your loan officer to help obtain any additional documentation. During this time, once all conditions from the underwriter are met, you will be able to officially schedule your closing.
You will receive an email from the lender with your Initial Loan Disclosures.
This is a big package that contains a lot of important information along with your Loan Estimate. You will electronically sign this loan package, indicating that you intend to proceed.
– Ordering a Title Search with your real estate attorney. You have the freedom to choose your own attorney. If you don’t have a real estate attorney in mind, ask your Loan Officer if they have any recommendations. Your closing will most likely happen at your attorney’s office.
– Ordering Homeowners Insurance (and Flood Insurance if applicable) with your insurance agent. Again, this is another service you are free to shop around for. If you don’t have an insurance agent, we can help with recommendations.
– Verifying your employment information with your employer. If you have a specific contact from Human Resources, it’s best to provide us that information to help reduce any delays in obtaining this verification.
– Ordering an appraisal. This is conducted by a third party appraiser. In some cases you can get an appraisal waiver, saving you that out-of-pocket cost.
– Keeping your credit, asset, income, and any other documents up-to-date. Sometimes underwriters will need updated documents to make sure everything is in good standing. Your Loan Officer may periodically ask you for updated documents, or new documents if needed. If a credit report is required to be refreshed and your credit score increases, we can opt you in for a lower rate if you qualify.
– Helping you fulfill any other conditions required by underwriting.
I have been asked for a Letter of Explanation, what is that?
This is simply communicating things with the underwriter about your loan. They may want clarification on certain things so that they can better understand the situation. Or, it’s just a written and signed statement by the applicant.
What happens if I run into problems during underwriting?
Our Loan Officers are very experienced with this process, backed by senior management with decades of experience. When possible, they have the ability to come up with solutions to make your deal work.
What happens during closing?
Whether you are purchasing, or refinancing, this is your super day. Everything leading up to this time is now in place with your mortgage, title, insurance, and escrow. Your closing will happen at your attorney’s office. They will go through all the paperwork with you that you will sign, and they will answer any questions you may have. The new home is now yours, or your refinance on your current home is complete!