The Mortgage Buddy would like to welcome back Keith Pentz of RE/MAX Advantage 1 in Worcester, MA for second and final installment of his article “Your Offer is Accepted! So Now What???”. For those who didn’t get a change to read part one please make sure you do. Keith utilizes his background and experience as both a mortgage originator and Realtor to pave a path of success for today’s prospective homebuyers.
Congratulations on having your offer to purchase your new home accepted! Here is what you can expect from Appraisal thru Closing:
Appraisal is Ordered and Sent to the Underwriting Department Once everyone is in agreement that you are still buying the home and the sellers are still selling the home and under what terms and conditions the Appraisal is ordered. The Appraiser is sent out by the Mortgage Buddy’s lender of choice to determine the value of the home you are buying based upon previous sales in the area and the condition/features of the home. Your lender is making a loan to YOU not to the house. The house is just used as collateral in case you default on your obligation to repay the borrowed funds. They are also there to be sure that any specific loan product’s (FHA, VA , Conventional) standards are met. Some MA lenders will have already underwritten your file at this time and have a conditional approval and some do not underwrite until all conditions including your appraisal are submitted. Some lenders send the appraiser immediately after an accepted offer and some wait until the P&S is signed. Be sure to check with your Mortgage Professional for clarification of their process and what will be done/needed when. Work with your Mortgage Team and get them all of the documents they request as soon as you possibly can. The #1 way to ensure you have a delay in closing on your new home and more stress for everyone is by not returning requested documents/paperwork/signatures/pay-stubs/bank statements within 24 hours.
Mortgage Buddy Tip: Don’t forget to read part 1 of this fantastic article found here.
Obtain your Mortgage Commitment Your Mortgage Commitment is your Lender’s way to tell you and everyone in the transaction that YES you are getting financing for this SPECIFIC property and will be moving forward with the closing. This is a specific date agreed upon in the P&S and if you CANNOT obtain financing for the home for some reason you need to get a denial letter from your Lender and to the Seller’s Attorney BEFORE the Commitment Contingency Date. What happens if you do not obtain a Commitment Letter, an extension or a denial letter before the Commitment Date? All that Earnest Money you put down at the Offer and P&S may be at risk. Make sure you work with your Attorney and Mortgage Professional to watch this date and be sure you do not miss it!!!
Get Your Final Numbers from your Attorney for the Closing Before the closing your Attorney will send you a copy of the HUD-1 Settlement Statement that shows all the fees associated with the transaction and any money you need to bring to the closing. Make sure you ask any questions that you may have at this point then get to the bank and get a CERTIFIED BANK CHECK for the amount you will need to close.
Final Walk-through The day before the closing you will do a final walk-through of what will soon be your new home to be sure that everything is still in the same condition as when you last saw it! If the sellers were to be moved out by now, then be sure there is no damage from the move. If the window treatments were listed in the P&S to be left at the home be sure they are still there. If there are any issues during the walk-through contact your Attorney immediately so they can get fixed! Your Realtor will contact the List Agent as well but be sure the Attorney is aware as well.
Closing The day is finally here! Be sure to bring with you: Your ID, your checkbook in case there are other unforeseen expenses(the oil tank just got filled, water bill is due) that crept up last minute. You should have been prepped by your Mortgage Professional and Realtor as to what you will be signing and what to prepare for at the closing. Once everything is on record with the Town you will receive your keys and..Congratulations! You are now a Homeowner!!
Keith Pentz, Realtor
RE/MAX ADVANTAGE 1
179 Shrewsbury Street
Worcester, MA 01604
774-232-1690 Cell (call or text me!)
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