LOAN PROCESS
After submitting your loan application along with other required documents to your lender, your loan goes into underwriting. The term “underwriting” refers to the process that leads to a final loan approval or denial. The lender will also order an appraisal of the home. A loan’s approval status is made by a professional underwriter who uses specialized software programs and analysis to determine your loan’s outcome. Once an underwriter has reviewed all of a mortgage applicant’s information and documentation, a decision will be made on the loan’s status.
APPRAISAL TIME
A real estate appraisal helps to establish a home’s market value which is the expected price it would sell for at the time the appraisal is performed. It’s an opinion of value from a licensed real estate appraiser who visits the home and inspects its size, condition, function, and quality.
The appraisal is required and ordered by the mortgage company that is going to finance your loan. The appraiser will first come out to the property and inspect the home. Next, the appraiser researches similar homes in the area and compares recent sales to determine a fair market value. You will then be provided with a report that includes a final opinion of value.
Based on the outcome of the appraisal, there are options for both the seller and buyer.
RECEIVE YOUR APPROVAL FROM YOUR LENDER
After a file has been fully underwritten and all of the conditions are satisfactorily met, a final underwriting approval will be issued. This is known as a “Clear to Close.” Clear to Close means that the documentation you provided to your lender has met their approval and that no additional paperwork is required. When you’re “Clear to Close,” your lender is ready to fund your loan and will begin communicating with the closing agent to prepare your documentation for closing.
