While the lending institution completes all the paperwork (assembling the loan package), the real estate agent should keep in touch in case any hitches develop. You might check yourself from time to time to see if things are going smoothly. Usually, however, no news is good news. Within three days of your application, the lending institution must send you a good faith estimate of your closing costs, and notification of your APR, the adjusted percentage rate. If you paid for the appraisal, you are entitled to receive a copy; if it isn’t offered, request it in writing. Keep the broker or your lawyer informed of any communication you receive from the lending institution, local government, or FHA. Above all, don’t go out and put a major purchase on credit. This is not the time to incur additional debt or deplete your cash. After the loan package has been assembled, your loan consultant will submit the package to the mortgage-underwriting department for review. This is now done electronically with most lenders, a process called desktop underwriting. The lender may then issue its findings either in the form of a commitment letter or a conditional commitment dependent, for example, on certain repairs to the property before closing or on your clearing up an outstanding judgment, or even a final appraisal, if the house is brand new. In any event, be sure to contact the broker, your lawyer, or closing agent as soon as you hear from the lender. Once you have the commitment safely in hand, nothing remains but to find a time (within the number of days stipulated in the commitment letter) that suits everyone for arranging your walk-through and transferring the property. You are ready for closing. |
