Understanding The Mortgage Side Of A Transaction
We recently had a Realtor tell Heejin that we needed to get loan documents to title 7 days after we got into contract, before she told Heejin how to run our company in general; the conversation didn’t go well. 😊
In any case, this was interesting because the Realtor had been in the business for many years and she did not understand the mortgage side of things at all.
In our Mortgage 101 Seminar, we have a slide that says: “11 Million More Steps.” This is a slight exaggeration, but it is meant to illuminate how much has to take place after a contract is ratified. We are often surprised by how many Realtors do not understand this.
What Happens After A Contract Is Ratified
Below are some of the steps that must take place after a contract is ratified. Not all need to be read, but they again illuminate how much needs to be done and why it all takes from 17 to 30 days, no matter what.
- Request Info From Realtor
- Request Exact Fees From Escrow
- Order Appraisal
- Update Entire Loan File
- Analyze and Explain Rate Options
- Lock Interest Rate
- Prepare Disclosures
- Prepare File for Underwriting
- Underwrite File
- Review Loan Approval
- Request “Conditions”
- Review/Submit Conditions
- Underwriter Signs Off Conditions
- Obtain Formal “Clear to Close”
- Request Loan Documents
- Prepare Closing Disclosure
- Borrower Signs Closing Disclosure
- Draw Loan Documents
- Escrow Prepares Loan Documents for Signing
- Borrower Signs Loan Documents
- Escrow Prepares “Funding Package”
- Lender Receives and Reviews Signed Loan Documents
- Lender Requests Final “Funding Conditions”
- Lender Clears to Fund/Request “Wire”
- Escrow Records Transaction with County
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