Here are two more critical steps of the home-buying process.
Today Ryan Shammam, Desirae Morries, and I are continuing our discussion with two more important aspects of the home-buying process: signing loan documents and funding the loan.
Let’s begin with step No. 7: signing the loan documents. At this point, the notary makes an appointment with the escrow company to come to your home or office so that you can sign the necessary papers. This is when you’ll see what your monthly payment will amount to, so be sure to pay attention to the information given to you.
“Don’t make any large purchases right before closing.”
When the loan goes live, by which we mean when you have an accepted purchase contract, your lender will have to disclose all of the terms to you within three days, including the interest rate your lender will charge you. At this point, the only things that are subject to change from when the loan is disclosed to the closing table are things like the title and escrow fees, which are outside of the lender’s control. That is, unless there’s some change to your credit, don’t make any large purchases right before closing. We’ve seen loans get denied after clients had bought things like iPhones and new furniture before the purchase process was fully completed.
To avoid the false promises that many companies make regarding low, low rates, buyers should seek out a direct lender. When they go to price out your loan, they can see what all the major banks in the US are charging. A direct lender can choose whoever has the best pricing for you so you can lock in that rate with them.
That leads to step No. 8: funding the loan. There are different kinds of funding that lenders use. Sometimes they’ll send the documents out and after the borrower signs them, they’ll wire their money in. After that time, the escrow company will contact the lender. Then begins the roughly three-day period when the lender has to balance and officially record. However, Ryan and his company do all of that balancing in advance. That way, when the documents go out, the wire goes with them, which allows the lender to begin recording that day.
As always, if you have questions about buying a home or have any other real estate needs, don’t hesitate to reach out to me. I’d love to speak with you.
