You’ve Made An Offer On A House – Now Get Your Loan!
Last month we covered the items you'll need to have ready for your mortgage loan application. Now that you’ve gathered the necessary information, here’s what happens next.
Start by speaking with a mortgage loan officer, such as a member of the knowledgeable mortgage team at Wright-Patt Credit Union. They can provide a basic timeline for processing your application, as well as the types of loans and current interest rates available. You will also receive a list of fees and disclosures related to your loan application.
Fees and Timeframes
At WPCU, you’ll need to pay a non-refundable appraisal fee of $350 and a credit report fee of $20 to proceed with your application. You should expect the process to take around 30 days from the time you begin your application to closing, so be sure to start the process as soon as your offer is accepted.
Once your loan application is taken and you have provided the necessary documentation, we’ll order a credit report, appraisal of the property, title search, and request verification of the information you provided. Different types of loans have different requirements, so if additional information is necessary, be sure to provide it as quickly as possible to avoid delays and added costs.
The process of reviewing your application and supporting documentation for loan approval is referred to as underwriting. During this time, your financial ability to handle the requested loan will be considered, and property used as collateral for the loan will be assessed. Loan approval generally takes anywhere from 24 – 72 hours. All parties (member, loan officers, Realtors®, etc.) are notified of the approval, or lack thereof, along with a list of any additional documentation (referred to as conditions) that must be satisfied before the loan can close. The approval is the beginning of the closing process.
Once all conditions have been met, the loan is ready to move toward closing. Additional disclosures, the note and the mortgage are prepared and sent to the title company. The title company will coordinate your signing of all loan documentation and explain the documents you are signing. They also play a key role in ensuring the title to the property is free and clear. Once closing documents are prepared, you’ll be told by your closer/processor how much money you’ll need to bring to the closing.
Funding and Recording
Once all parties have signed the closing documents (your signing hand will get quite a workout!), the paperwork is returned to us for review. If everything is in order, we’ll issue a check to fund the loan.
The title company will record the legal documents necessary to transfer ownership of the property into your name and the deed of trust is recorded to show the new loan on the property. Congratulations - your loan is now officially closed!
Expect the Unexpected
At any point in the application process, you may be asked for additional information. Your loan may also hit a bump in the road, such as the home appraising for less than the price you’ve offered. While these issues can cause delays, your mortgage loan officer can walk you through these roadblocks and help keep the process on track. Timely communication from both sides is key to making sure the process goes as smoothly as possible.
To learn more about the application or home buying process, check out the Wright Advice page at Wright4YouMortgage.com.
Mortgage loans processed and underwritten by myCUmortgage, LLC — a wholly owned subsidiary of Wright-Patt Credit Union, Inc. All loans subject to credit approval and property appraisal.