Loan Approval

Once the offer is made and accepted, you are ready to work with a lender to secure the specific financing you need. If your mortgage is pre-approved you are already well on your way. You have probably already paid a modest application fee and provided the lender details concerning your financial status. The application fee may have covered the costs of a credit report and home appraisal.

Several more important steps have to take place on the lenders side before your loan can be funded and settlement (closing) take place:

Home Appraisal to confirm that the home is appropriately valued and youre not overpaying
Reports on your employment and income to verify your ability to make loan payments
Verification of bank deposits and balances sufficient to cover down payment and closing costs.
Home inspections to ensure:
- Compliance with building codes and regulations
- Completion of repairs and improvements agreed to by the seller
- No existing threat of termite or other insect damage
Title search to ensure clear title conveyance
Verification of hazard insurance to protect the home/lender against catastrophic loss

Once completed, all documents are reviewed by a loan committee and final approval of your application can take place. You should receive a confirmation letter stating the final loan amount and terms when the loan is approved.

How long does all this take?

The time can vary depending on the type of loan, the lenders workload and efficiency, and on how quickly you supply the lender with needed information. A good agent will expedite the process by riding herd on all parties to make sure the process doesnt get stalled.