Successfully closing on a home in Cape Coral requires more than looking at the property, creating a contract and showing up at the title company to exchange funds and sign paperwork.
The 5 steps to a successful closing
- Mortgage pre-approval – before looking at any home with your agent the first step is getting a pre-approval letter. Why this first? The market is moving quickly. It takes several days to gather documentation the lender needs to issue this important letter in order to move forward. As a buyer, having your pre-approval letter means you know how much you can afford and roughly how much a payment will be based on your approval amount. As a homeowner, having a pre-approved buyer through your home shows motivation and commitment to the process, not to mention a higher likelihood of the buyer actually obtaining financing.
- The hunt – Now that you have your pre-approval letter in hand, set up an appointment with your agent to view homes that meet your criteria. If you are obtaining FHA or VA financing there are certain minimum conditions the home must meet in order to finance. Your agent should discuss these things with you in detail in order to avoid wasting time and money on inspections if at all possible.
- Formal loan application – Once you have found “the one” and a contract is in place, your lender will meet with you to make your formal loan application. At this appointment interest rates and rate lock agreements will be discussed.
- Underwriting – Your formal loan application has been completed and submitted to processing for underwriting review. The processor will order your appraisal, verify employment, work with the title company and request tax transcripts from the IRS. Over the course of the next one to two weeks additional documentation may be requested as needed. The processor also ensures all of these items are submitted to the underwriter for review to obtain your clear to close.
- Closing – Congratulations! You have received clear to close! The underwriter has now released your file to the closing department to prepare your closing documents that will be sent to the title company. As soon as the title company receives the closing package they will work on calculating the final figures on the settlement statement for both buyer and seller. The settlement statement will be submitted to the lender for approval. After lender approval a copy will be sent to the real estate representatives for their approval and finally to both buyer and seller to review. A time and day for closing will also be set at this time.
You made it!! Hopefully your experience was a smooth and uneventful process from start to finish. Please feel free to contact me if you have any questions or would like clarification about the process.
© Danielle Sharp | Sharp Homes Realty | firstname.lastname@example.org | 5 Steps To A Successful Closing