OK…so we have our offer accepted…we have completed our inspections and negotiated the repairs (if applicable). Now what?
Well…I would like to say we just have to WAIT…but of course..it is usually not that easy if you are getting a new loan.
BE PREPARED to supply the lender with additional documentation as quickly as you can when they request it. Your loan officer will have gathered the BIG list of what is needed. And then you might be dealing with the loan processor who will ask for further documentation. And finally…it goes to the actual decision maker…THE UNDERWRITER.
The file is usually submitted to underwriting the week prior to the scheduled closing date. This part can get anxious…but if you choose a good lender from the beginning…it will be less stressful. They may say they are “approving”…but there are “conditions”. Conditions mean they need MORE documentation before they give final approval. GET IT TO THEM!
During this time you will also want to make sure you call to get the utilities changed over into your name. Depending on the company and your possible past history with them, you may or may not be required to have an additional deposit(s).
So..the underwriter will at this point get the file approved and move on to ‘docs”. This is industry speak for “loan documents”. Depending on the lender…it may take 24-72 hours to get the docs to the title company.
When the title company receives the docs…we will usually get notification from them (or the lender) that docs are out. Title will need a couple of hours (at least) to get them processed and prepare them for signing. Why is this an issue? Because the contract requires that the loan documents be signed 3 DAYS prior to close of escrow. The buyer needs to be as flexible as possible during this time. DO NOT ask for a day off based on when YOU THINK documents will be ready. If you work a job that needs prior notice for time off…please do your best to give notice to your employer that you are in the process of buying a home…and may need to ask for a little longer lunch break…or maybe to get off a bit earlier than usual when you are noticed that you will need to go in to sign your documents. I know…some jobs have ZERO flexibility…but do not worry… we will work through that. You will also get wiring instructions at this time with the amount of funds needed to close so that you can go to your bank and wire the funds to the title company.
ANYWAY…after the docs are signed, they are returned to the lender for review and “funding”. This is the big one! The lender sends the funds (usually electronically) to the title company…and they then can release the file to the assessors office for recording!
Once the confirmation of RECORDING is received…we CLOSED! At this point I am free to release your keys. YOU BOUGHT A HOME! YEA!