Ideally, you have been pre-approved by a mortgage lender to have negotiated the best possible purchase price. You can then decide to continue the loan process with this Lender or select another. There are numerous lenders and loan programs available. Harb & Co. recommends you “shop” with various lenders to determine that you obtain the loan that best suits your needs. We can assist you by giving you the names and telephone numbers of loan officers to contact. Remember that you must turn in the completed paperwork and obtain verbal and formal loan approvals within the time frames agreed to in the Purchase Agreement.
- When you meet with the Lender’s representative, come prepared with various information. Most importantly, have on-hand account numbers and addresses for all financial institutions. Lenders and loan programs vary as far as documentation requirements. In many instances, you will need to provide W-2s and a current paycheck stub. If self-employed, two years of Federal Income Tax Returns.
- The Lender will order a credit report, appraisal, and other necessary documentation to approve your loan. Be sure to ask questions. Harb & Co, the Lender, and the escrow officer will be in close contact with you during this process.
- Upon completion of loan approval, the Lender prepares loan documents (the bank’s contract). Once ready, these documents typically go to escrow, as certain items require notarization. At this time, your escrow officer will contact you to set up an appointment for you to sign these documents. The escrow officer will also give you the amount of your down payment and closing costs needed to complete the sale. They will request that you bring a cashier’s check or wire transfer funds 48-72 hours before the close of escrow.
Once the documents and evidence of homeowner’s insurance on your new home are reviewed, the Lender should be able to fund the loan (write a check). At this point, you are hopefully only waiting for home ownership to occur, and no additional paperwork will be required. Typically, the bank issues the check. Then the deed (transfer of title) records with the county recorder the following day. Upon recordation of the deeds, you have legal ownership of the property.
CONGRATULATIONS! YOU ARE THE NEW OWNER! IT WAS HARD WORK BUT WORTH IT.
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