1453 New Haven Road (Rt. 63), Naugatuck, CT 06770        Phone: (203) 729-9050       info@egfllc.com

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Steps of the Loan Process

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1453 New Haven Road (Rt. 63), Naugatuck, CT 06770        Phone: (203) 729-9050       info@egfllc.com

Text Box: ___FIND OUT HOW MUCH YOU CAN AFFORD Meeting with one of our experienced loan officers here at Evergreen Financial will help you determine how much you can afford. That is dependant on your income, credit score, monthly expenses, down payment, and interest rate on the loan.   ___ GET PRE-APPROVED Gather the required documents and complete the loan application.  Our loans officer will guide you through this process. Once everything is verified and approved by the lender, you will be given a pre-approval letter, which you can use when shopping for a home. Often, but not always, a pre-approval letter will be required when you write your offer to purchase. Most definitely it will make you look like a more serious buyer, and one who is ready to proceed with the home buying process.   ____ FIND A GOOD REALTOR                                          In most markets, the seller pays the commissions from the proceeds of the sale of their home, and so having a buyer's agent doesn't cost you anything. Your buyer's agent will keep you up-to-date on properties as they hit the market and will show those properties to you. He or she will also help you negotiate, coordinate inspections and paperwork, and take you through the transaction as you move along, right up to the closing table.   ____WRITE A CONTRACT Once you're decided on what you want in your new home and have found one that fits your needs and fits your budget, then it's time to write the offer. You'll sit down with your agent and complete a real estate sales offer. At this time, in most states, you will also be required to submit earnest money, to make your offer legal and binding.   ____ GET BACK WITH YOUR LOAN OFFICER You'll need to let your loan officer know you've found a home and get him or her copy of your sales agreement.   ____ THE HOUSE WILL BE INSPECTED AND APPRAISED The house will have to pass any inspections (city inspection, termite inspection, whole house inspection, etc.) that are required and will also be appraised by an appraiser to make for sure that the home is worth what you are willing to pay for it. The lender will generally select the appraiser. This protects you and also your lender. If the home does not pass an inspection, you may have to renegotiate with the seller. It's the same if the home does not appraise for your contract price. You may have to renegotiate. Your real estate agent will guide you with these challenges.   ____ APPROVAL After the house gets appraised and inspected, the loan officer will gather the paperwork along with your application and other necessary information and send it off to the lender.  The lender will review the documents and will send a conditional approval to the loan officer with additional condition requirements. These could include proof of employment, title search, homeowners insurance etc. Once those requirements are met, the lender will review it, and issue a clear to close.  When you get a clear to close you are ready to close the loan.   ____ GET INSURANCE You will be required to place insurance on the home. The insurance policy will also need to list your mortgage holder to protect them in case of a loss. In many states you'll pay up front for one year of insurance coverage on the home and will need to provide proof of this binder prior to closing.   ____ YOUR TITLE INSURANCE Your title company or attorney who is handling the closing will do a title search to make sure that the title is free and clear of any liens or encumbrances, to insure you will get clean title to the property and will issue a title insurance policy.   ____ GO TO THE CLOSING Once you have received word from your loan officer that your loan has been approved and he or she has received the approval letter from the lender, the final step to owning a home is the closing, also known as the settlement. When you go to the closing, you will sign the final mortgage documents, the seller will execute the deed to the property, funds will be collected and dispersed and the closing agent will record the necessary instruments to give you legal ownership of the property.  An estimated closing date was most likely specified in the sale contract, and is usually required at least three to fives days notice in advance in order to prepare the closing documents and get them to the closing agent.  The standards documents commonly required, regardless of legal jurisdiction are as follows: Title Insurance Policy Homeowners Insurance Termite Inspection and Certification Survey or Plot Plan Water and Sewer Certification Flood Insurance Certificate of Occupancy or Building Code Compliance Letter For the most part, your role at closing is to review and sign the various documents associated with a mortgage loan. The closing agent should explain the nature and purpose of each one and give you and/or your attorney an opportunity to check them before signing.  When all documents have been signed and the closing agent is satisfied that all the instructions for closing have been compiled in full, you become the legal owner and are given the keys to your new property!