Hi, it’s Dave Holland with Veterans National Mortgage.
Once you find your dream home, and you’ve made an offer, the seller is going to either accept or counter your offer. If you get lucky and the seller accepts your offer, then you open escrow.
From this time, once you open up the escrow, you have three days to submit your earnest money deposit. Your earnest money deposit is a good faith deposit, it’s usually a percentage of the purchase price of the home. This will be deposited into escrow, and it will be held for the remainder of your escrow time typically is about 30 days.
Your earnest money deposit can either go towards down payment or closing costs. Or if you have all of those covered, you can get those you can get your earnest money deposit back. Once you submit your earnest money deposit escrows open, they will drop escrow instructions.
Escrow instructions are basically a guide as to what the seller wants, and what the buyer wants. They will lay out the details of the purchase the loan, all of that.
Then you’re going to contact your loan officer. They will start the process of home buying on their side. So what this means is that you already have all of your documentation, we’re now going to make sure that all of that documentation is correct and begin the submission process to the lender.
“Escrow instructions are basically a guide as to what the seller wants, and what the buyer wants.”
The lender now has all of the information about the home. So we just need to submit the documentation to the lender and get your loan started. Once your loan is submitted, you’re going to receive initial disclosures.
So those initial disclosures are going to break down the fees and the costs of that loan, you’re going to have closing costs in addition to your downpayment. Depending on the type of loan, that downpayment could be anywhere from zero to 25%, just depends on what type of loan you guys have figured out is best for you.
Once you receive your initial disclosures, you’re going to go through make sure that everything looks good, and either DocuSign them or sign them in person, send them back.
Now the lender can begin on your loan, you’re going to get an appraisal order. Usually, that happens right after you sign those initial disclosures. You’re going to sign something that’s called an intent to proceed. This gives the lender the go-ahead to start the process in order for the appraisal.
The next process that’s going to happen is with your agent. You guys are going to set up various inspections, most of them are your choice.
There’s something that’s called a home inspection, the home inspection is very, it’s very in-depth. They go through the entire home, tell you what is needs to be fixed, what things are working, what things are not working
“The next process that’s going to happen is with your agent.”
Then they submit that to the real estate agent for you and them to review. And you can decide what items that you want to either be fixed or not fixed or if you’re looking for a credit from the seller for those items. On the loan side, after your loan has been submitted, it’s going to go into the underwriter, they’re going to take a look at it and review it.
The underwriter is going to look at various items, they’re going to look at your credit, income, and assets just as the loan officer did. They’re going to review these and see what they want further, to make sure that you are qualified to purchase that home.
They’re going to do verifications of employment, all kinds of verifications on credit, income, and assets, and then request various items from you. Some things are as simple as a letter of explanation. Some things go into a little bit more detail. And then once you submit those, you’re ready for final approval.
Once the appraisal comes back in, that’s going to give a value for the home. Then if everything looks good, you will continue to move forward with your loan. The items are going to be reviewed that the underwriter has requested from you. And once those items are reviewed, they’re either going to ask for additional items, or they’re going to give you what’s called a final approval or a clear to close.
“Some things are as simple as a letter of explanation. Some things go into a little bit more detail.”
At this point. All of the other inspections should be complete. There’s usually a termite inspection, your physical inspection, and the appraisal are the major ones. The other inspections are usually at buyers’ request if you’re looking to have things instead like the roof, or an engineering certification, things like that. Those are usually above and beyond.
But the main, the main reports that they’re going to be looking at are the termite report and the appraisal report. If those all look good, the underwriter gives you final approval, then everything looks good on the loan side, then you will get what’s called a clear to close, which is the same thing as the final approval, and they will set up a time for you to sign your mortgage loan documents.
At this time you’re going to receive a closing disclosure. The closing disclosure is similar to the estimate that you signed in the beginning. But escrow and the lender have collaborated to figure out what those fees are, those numbers should be pretty tight. At that point, everything should be looking good, you’ll have a cash-to-close amount for you to be able to bring in.
If the Closing Disclosure looks good you sign that closing disclosure and send it back to the lender. You have a three-day wait period. By the time you sign that Closing Disclosure to go figure out the numbers, make sure that they look good. And then you’re going to sign your final docs, you will know that they are your final docks because it’s a stack like this. That’s exaggerated, but not really it’s about 100 anywhere from 100 to 140 pages of documents that you’ll sign, you’ll sign that in front of a notary.
“Everything should be looking good, you’ll have a cash-to-close amount for you to be able to bring in.”
It’s very important that you have your driver’s license with all the correct information on your driver’s license that matches the documents and that your driver’s license has not expired. When you go through the loan signing with the notary, there are a few documents that you should really pay attention to.
These are your deed of trust, the closing disclosure that you signed. In your note, the mortgage note is going to have the loan information interest rate on there. It’s a very important document.
Once you sign all of that, then they send the mortgage loan documents back to the lender. The lender reviews the loan documents, makes sure everything is done, and they will fund your loan if everything looks good. Once you fund then it’s sometimes it’s the same day, sometimes it’s the next day.
But once you fund your loan, it can then record with the county what changes ownership, they’re going to record a grant deed that the seller signed. That grant deed says that the title of the property went from them to you. Once that property records, then you can get your keys.
I hope that helped. Now for more information, please go to our website at veteransnationalmortgage.com click apply now, for a free interest rate, quote, and pre-qualification that does not affect your credit (pre-qualification with no credit pool).
When you’re ready to get pre-qualified, we can help you get pre-qualified with no hard inquiry on your credit and a free interest rate quote in under 30 seconds.
Our team is excited to help you with your dream home.
Or you can call us directly at (888) 922-2022
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