We’ve applied for the mortgage…now what?
Applying for a mortgage these days can be a bit confusing and even discouraging.
However, it doesn’t have to be that way! The more you know about the process and what to expect, the easier it will be.
So, what happens once the mortgage application is submitted?
An appraisal will have to be performed to indicate the market value and condition of the house. By knowing market value, you and the lender have an indication of whether or not you are overpaying. The appraisal cost is usually paid up front to the appraisal management company, not the appraiser directly, to ensure a non biased opinion of value.
A title search is ordered to make sure there are no liens on the property, and if there are any such liens, they will be addressed. All liens must be cleared before the closing.
The inspections are ordered by the buyer or one of the realtors involved. House inspections and pest inspections will determine any deficiencies or safety issues, as well as the lifetime expectancies of items such as the roof and air / heating systems.
While this process is happening, the mortgage company will be ordering required reports, verifying income and positioning your file to be submitted for approval.
Follow your lenders instructions and submit all documents asked of you in a timely fashion to ensure your closing is done according to your agreed upon contract.
The home buying process is as easy or as hard as you make it. Be prepared.
Michael Lux, Sr. Loan Officer