Assuming you have all of the necessary info into the bank and the appraisal is the last piece needed for the commitment, then I … It is not unusual for the parties to the transaction to complete their roles without ever meeting face to face. Just spoke with my attorney and he says we won't even hear the closing date for about 1.5 weeks. It informs you and the home sellers that you have a loan and can close … The loan commitment is one of the last steps in the mortgage process before moving forward to loan closing. There will be a number of documents or affidavits that you will be asked to sign at closing. The second FAQ we’re addressing here is: How long does it take to close after the appraisal takes place? Even though you have signed a purchase agreement and your loan request has been approved, you have no rights to the property, including access, until the legal title to the property is transferred to you and the loan is closed. Title Insurance Policy - Every lender will require title insurance. The company issuing the title insurance policy will have researched legal records to make sure that you are receiving clear title, or ownership, to the property. In some areas, an addendum to the title policy eliminates the need for a survey. You can get the exact figure a day or two prior to the closing from the lender or the closing agent. (Of course, the seller can also introduce curveballs at or near closing). ... Prequalification: Based on information that you provide with a cursory check, a lender assesses the level of loan for which you qualify. It may be easier to think of the interaction between the buyer and the lender in these four general stages: If you are not sure of your current status with the lender or the meaning of any letter that you receive from them, make sure that you clarify the situation with your loan officer. Certificate of Occupancy or Building Code Compliance Letter - If your home is new construction, you will have to have a Certificate of Occupancy, usually from the city or county, before you can close the loan and move in. If repairs or maintenance on the property are a part of the lender's commitment, there must be time to complete them. Is a mortgage commitment letter legally binding? The closing agent will make sure that all necessary papers are signed and recorded and that funds are properly disbursed and accounted for when the closing is completed. This form is also required by Federal law. I think 60 to 90 days is way to long. In some parts of the country, this may be called a "wood infestation" report. Closing attorney’s office schedules a closing time. The policy must remain in force for the life of the loan. Some of your charges on the HUD-1 may have already been paid, such as credit report and appraisal fees. Other Documentation - Additional documentation required for closing will be set out in the commitment letter from the lender and will depend upon terms of the sale, peculiarities of the property and local ordinances and custom. If your loan is greater than 80 percent of the value of the property, you will probably have to pay for mortgage insurance that protects the lender in case you default. Make sure you know exactly when your first and subsequent payments are due and what the penalties are for being late. This also applies to borrowers refinancing their mortgages. Properties with well and septic water sources are usually governed by county codes and standards. The offer will include a price, a suggested closing time frame (typically 30 to 90 days from the accepted offer), and conditions that allow you to cancel or renegotiate the contract. For a small additional premium, it will protect you up to the full value of the property if fraud, a lien or faulty title is discovered after closing. The mortgage commitment is an important step in the approval process. You want to make sure that settlement will take place before your loan commitment expires and before any rate lock agreement (guaranteed terms of the loan) expires. I think the official commitment letter came a few weeks before, but i don't really remember. A brief description of the major documents may help you understand their purpose and significance. The underwriter will do more than approve your credit history and financial documents. If all conditions have been met, you need to find a mutually convenient closing date for all parties to convene and sign the paperwork. Some of these will be your responsibility and others will be the responsibility of the seller. In fact, we have been getting files Clear to Close in under 15 days! 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