Since you start to apply for a mortgage loan until it is closed, you will take many steps. And usually, Application is your first step which is just beginning, and you will have to study about having the house appraised of inspected and getting a title search and title insurance. If you are a self- employed or you are buying a house in a town or condo, you need to prepare other documents.
And when your loan has been approved, the time for closing is coming. It is about few weeks and most of it occurs behind the scenes. You have to complete your documents with your application. And when your lender requires for more information you can respond them promptly. When you have any problems about your application you need to contact with your lender and ask for their help, especially when you finish your application you should call your lender and real estate agent to check on your loan application status.
In your loan process, you may help them to contact with employer to prove your information for them and your employer can give them your documents. You need to remember that you should keep the records between you and lender, it will be the proof for you when there are nay problems occurs.
When you are waiting for the approval of the loan, the lenders will make some steps below you may see:
1, Your underwriting verification:
Your lender of underwriters springs into action, they will verify the information on your application and supporting document. They will be sure to call for your employer to verify that you work in the job and at the salary stated in your application.
2, Your Appraisal:
Your lender will require you an independent appraisal of the property prior to closing, and the outcome of which can effect to the rare and terms of your mortgage loan. And I will mention you the cost of an appraisal is often from $300-$500.
3, Tittle search and title insurance:
Your lenders do not want to lend money against a house which may have claims or other encumbrances on it. That is the reason why a title company perform a title search. The title company will go to the county courthouse and research the history of the property. In some situations, the title search and title insurance will be issued to protect the lender and protect the property of owner.
4, Flood certification
Lender also want to know about the property which you are buying is in a flood prome area. They will hire a vendor to analyze your mortgage and neighborhood to determine if the house is in a flood zone, the report will be called is flood certification and you will be required buy a flood insurance because most standard home owners policies do not cover for the damage from rising water.
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