|First Time Home Buyer Timeline|
1. Call LO to make a loan application to get preapproved and find out how much house you can afford, based on the lender’s guidelines. Most of these guidelines are set by federal agencies (FNMA, GNMA) which all lenders must abide by.
a. LO pulls credit report then asks for supporting docs from buyer – this documentation is verification of income, employment assets, etc. that show on the buyer’s loan application. These are bank statements, tax returns, W-2s, written verifications of these items, letters of explanation of items that may show up on your credit report, etc.
2. Buyer finds home &ndashndash; makes offer, negotiates and signs a contract for a purchase price
3. Buyer calls LO to lock in interest rate
4. LO gets contract, etc. then orders appraisal and title search.
5. Buyer does a home inspection – not required as part of the loan process.
6. LO, receives title within 1-2 days, and appraisal within 2 weeks, then sends the loan document package up to underwriting (UW) for approval.
a. UW reviews and typically asks LO to get more supporting docs from buyer.
b. UW sends the loan to audit department for final review.
c. UW may ask for some document of clarification at this stage of anything that is unclear or incomplete.
7. LO receives final loan approval and then calls buyer and realtors for their available times/dates to close. LO calls title company and schedules the closing.
8. The title company conducts the closing:
a. The title company is a third party, who makes everyone happy. The buyers want a deed & keys to a house, the sellers want a check and all the other third parties who helped make the transaction possible (realtors, appraiser, lender, etc.) want to get paid for their services, the lender needs their docs all signed in the right spots, by the right people in the right ways, money needs to change hands, the sellers’ mortgages need to be paid off, the deed and mortgage need to be made official record at the county clerks’ office after closing…so, who makes all that happen? Jett Title.
b. The closing is a 45-60 minute meeting of buyers, sellers, realtors and loan officer, led by the title company’s closer. Document explanation & signing takes place. Buyer writes a check, seller & realtors get checks. Closing happens at the office of the title company, lender or realtor. Buyer walks out as a new homeowner. Sellers leave to go to the closing of their new home with the sales-proceeds check they just received.
9. Buyers, sellers and all parties are very happy.
10. Title company does lots of behind the scenes things, one of which is recording the deed and mortgage downtown to the county clerk’s office to make them official record.