There are many complicated issues involved today in real estate closings. Here are some important tips and reminders to help you:
Get Pre-Approved ASAP
Select a company that provides a full pre-approval commitment which includes the submission and review of your income and asset documents as opposed to a “pre-qualification” which is not a binding commitment to lend.
• Your Lender is now referred to as the creditor. You are the consumer.
• Creditors cannot charge you any fees other than a bona fide reasonable fee for a credit report until a loan estimate has been provided to you.
• The closing disclosure must be provided to you 3 days before closing which is now referred to as consummation.
Be Responsive and Complete
• Submit ALL the requested documents UP FRONT and include ALL pages of each requested document.
• Make copies so you can easily resubmit the documentation if requested again by the creditor.
No New Debt, No New Credit Applications and No Changes in Employment
• Even though you may receive an approval for credit, your creditor will likely pull a second credit report before consummation. Best practice is to avoid major purchases involving credit and avoid changing your credit picture in any way until consummation is complete.
• If at all possible, do not change your employment status or job before consummation as this could significantly delay and/or hinder your ability to obtain your mortgage.
Watch Your Assets and Keep Your Records
• Creditors will require documentation showing the source of any large deposits into your accounts within a few months of consummation. Undocumented deposits can cause delays so discuss this with your Creditor if applicable.
Read Your Commitment Letter and Resolve Conditions
• Review ALL conditions on your commitment letter with your loan officer to confirm the specific items for which you are responsible. Provide the data ASAP.
• Don’t cause your own delay.
When buying a house or refinancing a mortgage in Delaware, the law requires that you have a lawyer represent you.
Trust the experience of Ward & Taylor, LLC to guide you through this intricate process.
These are guidelines, not legal advice. Facts affect legal conclusions. © Ward & Taylor, LLC