Buying a home can be both exciting and stressful. You go from pre-approval, to finding the right home, and once you get through the initial purchase agreement and lending estimate your brain might already be buzzing with information overload.
A good lending team like the trusted pros at EPM will make sure you understand all the terms of your loan, and you have the right information, advice, and documentation you need to feel prepared before the underwriting process begins.
Your lending officer and underwriter will take you to that finish line, and get your loan Clear to Close. But you aren’t quite finished yet. We‘re sharing the final steps you will likely go through before you get those shiny keys to your new home.
Once you’ve been through the above steps, and you’ve had your credit history, debt load, appraisal etc… all evaluated to meet the lender’s guidelines, and all tax, title, insurance, and closing requirements have been met. Your loan will be identified by your underwriter as Clear to Close.
Hopefully the first step once your lender tells you your loan is CTC is to feel a huge weight lifted once you’ve jumped through those hoops to get your loan underwritten.
Here’s what happens next:
1- Schedule the Closing Date
There are still a few more steps to go now, but at this point, you’ll have a clearer idea of whether or not you are right on track for the original projected closing date. It may turn out to be earlier or later depending on how your underwriting process went. Now you’ll schedule the actual closing date on the calendar.
2- Enter THE CLOSER
The final pro on your lending team will be the closer. They will communicate between the rest of the lending team and the title company and make sure all your documentation meets guidelines and conditions of your loan.
3- Closing Disclosure is Drawn Up
You already had your loan estimate, but that was a generalized approximation of fees.You’ll want to compare it closely to this Closing Disclosure document for changes. The Closing Disclosure will be provided at least 3 days prior to closing and outline final costs so you’re prepared at the closing for any fluctuations in price based on the new closing date.
4- Take a Final Walkthrough
You’re going to make a final visit to your property prior to closing to make sure that any agreed upon repairs have been made ,and any other conditions in the contract regarding the home itself have been met by the sellers. If not, your buyer’s agent will negotiate the execution of all terms prior to close.
5- Meet at the Closing Table
Closing will likely be at your title company or title attorney’s office. You will sign all the final loan documents and pay any cash due at closing. Your loan officer will guide you on what to expect and what you will need to prepare for this meeting.
Other things to keep in mind
*This sounds like a ton of work but the good news is most of it’s done by the loan professionals. In the meantime, between the time your loan is Clear to Close and the actual closing, your biggest job is to keep your finances in a steady holding pattern. Avoid any big purchases or employment changes. And make sure you don’t make any changes to your credit score by opening new lines of credit until the home loan is closed, otherwise these big changes could put your loan at risk.
*While unlikely at this point, there are cases- as indicated above- where the home loan falls through after it is Clear to Close- For that reason, no matter how eager you are to get into your new place, make sure you don’t finalize plans for your physical move until after your loan closes and the keys are handed over.
The team at EPM is here to help you every step of the way. We want to help make the whole process as smooth as possible so you can get those keys to your new home and start making memories. Reach out to a lender to get started on that big dream today and make 2021 your year for a fresh start!