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Final Loan Approval: Underwriting Explained

clock June 5, 2014 09:30 by author MyTitleDirect
Now that your lender has received your appraisal report, they can begin underwriting your file. The underwriter will make the ultimate decision of whether or not the loan is accepted or denied. They will verify all documentation submitted by the processing department and make sure the information meets the loan program guidelines. If there are any deficiencies, they will ask for additional documentation to remedy them. Once they’re comfortable that all guidelines and criteria have been met, a final commitment will be issued along with the final rate-locked Good Faith Estimate. Signing the Commitment It is now time to sign the final commitment. The commitment is a contract that is usually sent to all parties involved in the transaction including realtors and attorneys. Once you sign the commitment, you have accepted the conditions in the contract and your mortgage has been completed. At this point, both you and the bank are obligated to fulfill all the terms of the mortgage and failing to do so will put your down payment and other prepaid fees at risk. Now that the commitment is signed and executed, all parties are notified and you are now ready to work on closing.   Download the article on Buyhomeapp.com


What is a home appraisal and why do lenders need to know a home’s value?

clock March 20, 2014 07:35 by author MyTitleDirect
An appraisal is a report that outlines an appraiser’s professional opinion of your property’s value at a specific point in time, based on specific factors. These factors include the location of the property, square footage, age and room count. The appraiser will also take into account what comparable properties have recently sold for in your area. Whether you’re refinancing or buying, a bank must have a good idea of the value of your home because it determines your maximum approvable loan amount. Once they have your home’s value, they can determine your loan-to-value ratio. Your loan-to-value ratio is one of the criterions that banks use to establish how your mortgage will be structured - the other two being your credit score and your debt-to-income ratio. How much do appraisals cost?   Read more of this article on BuyHomeApp.com