What is Going on Leading Up to Closing Day?
December 5th, 2007
So your mortgage loan has finally been approved, and you couldn’t be happier. Now you can sit there and wait until closing day comes. There are some things you can do during this waiting process. Lets go over some of those things that you can do to help speed up the process. We will also lay out what is happening behind the scenes while you are waiting around.
What Can You Do?
In order to help speed up the process you need to provide all the needed paperwork with your application. If you are missing something, then that will hold up the process. Make sure everything is in tact and ready to go. There then may come a time when your lender will request more information from you. When this comes up, respond as fast as possible. Do not hold them up, because it will end up holding you up.
Don’t be afraid to call and ask for updates from your lender. This may give them a jumpstart and work a little harder on your application. Plus it will ease any complaints you may have. Whenever you talk with your lender make sure that you keep a record of your conversation. This way you can recall conversations if questions may come up. It is done to protect yourself in case trouble arises.
What the Lender is Doing
While you are waiting and working on your end of the loan, your lender is verifying the information on your application and all the documents you have turned in. They will call all the relevant parties to make sure everything is correct and to assess the risk you might be to take on. If the lender perceives more risk, then they may require more verification before they are comfortable.
Your lender will also go after an independent appraisal of your property before the closing process is complete. They will give an expert estimate, and this will be one that the lender will really trust. The appraiser will get an overall look at your house, and then they will also look at the surrounding areas.
Is your property in a flood zone? The lender will look to see if you need to lock into any type of flood insurance. This is called flood certification. Your home may also be required to have the property lines verified by a professional survey. This is done to make sure the correct amount of land is actually there.
Finally, the lender will perform a title search. They will go to the county courthouse and get the history on the property. They will look for any claims that have come up against the property. This is done in order to protect themselves. They will get a title policy that protects them from the past actions taken against the house.
Additional Resources:
Share & Save This Post!
