The underwriter decided in your favor and now you are ready for the third and final step: closing. As soon as you receive firm approval or commitment from the lender, you should confirm the actual date of the loan closing. If you are purchasing a new home (not refinancing your existing one), an estimated closing date was probably specified in the sale contract, but a firm date needs to be set by you, the seller of the property, and your lender. 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.
At the loan closing, in the case of a purchase, title to the property changes hands from the previous owner to you. If you are refinancing, closing will include signing and agreeing to the terms of the new financing.
You should make sure that, at closing, you compare the Settlement Statement, which is the closing document that specifies the actual charges due, with the costs that were given to you up-front in the Good Faith Estimate. Although you will immediately notice that they will not match exactly, there should not be a huge discrepancy between the two. For a comprehensive guide to buying a home.
That’s it! Once you sign all the documents, you have completed the loan process. The once cumbersome process should now seem pretty simple. In fact, with the Internet and technology used by some lenders, the whole process could take as few as two weeks. This depends on the lender and the type of loan you choose.
The most important thing to remember about getting a mortgage loan is that, if you do your homework and get informed about the process, your experience will be smooth sailing.