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In our last article, we outlined a few closing costs. Besides paying fees for escrow services or title insurance, what else needs to be done before closing on a mortgage?
First and foremost, be ready for a lot of paperwork. This includes the application, disclosures, and other miscellaneous documentation. Completing this in a timely fashion will ultimately shorten the closing process.
The appraisal is usually the most time consuming part of the closing process. This requires setting up the inspection, completing the inspection, and preparing a report. The report then has to go through quality control. Appraisals are handled by a third-party.
Your lenders team of underwriters will take a few days to review the file, confirming that you meet all of the product guidelines. Once all checks out, you will receive a conditional approval. At this point, a final approval is pending the completion of additional paperwork and approval from the underwriters.
When this is finished, you will receive clearance to close. This is a three day process — it is the legally required to take this period and review the terms of your loan before signing the final loan documents. Upon completion, the loan will finally be able to close and go through funding.
You can typically expect the closing process to take 45-60 days. However, this is largely dependent on circumstances. Typically, purchases take a little longer than mortgage refinances. Getting a preapproval letter will save you a lot of time, as your lender will already have a lot of important financial information. Outside of getting a preapproval and ensuring open communication between your real estate agent and the sellers, a lot of this process is outside of your control. Thorough review of documentation, constant communication with all parties involved in the transaction, and efficiency through state of the art technology is how Lyons Mortgage insures a fast and accurate closing process.