Follow Up With Your Lender
When Buying Boston Area Real Estate
Meanwhile, how is the lending process going and how are you staying on top of it? Watch your commitment letter date and don't go forward without it. Make sure you thoroughly understand your loan program. Watch your rate lock very carefully and determine with your lender when to lock your rate. Get a copy of the appraisal from your lender. Ask your lender for an amortization schedule.
The appraiser will contact the listing broker and meet with him or her at the property to conduct the evaluation. Buyers are typically not invited to the appraisal appointment.
The bank appraiser is independent of the bank, the real estate agents, and anyone else involved in the process. Most appraisers are linked into the Multiple Listing Service which gives them the ability to look at all of the comparable sales for the area. The property must appraise for at least the price that you are paying for it or close enough to justify your loan. Your lender will notify you of the results as soon as they are available.
Formal Loan Application - If you have not already done so, you must now actually apply for your loan. One of the important dates in the home buying process is the loan commitment date. You will want to keep in touch with your loan officer to make certain that the loan is done by this date. Your agent will also stay in touch with the loan officer to help this process along.
Loan Commitment - The loan commitment is a formal document from the bank or lending institution that states your loan has been approved for the purchase of the particular property you are buying. This is over and above the pre-approval and is a loan that is "ready-to-go". In order to arrive at this point, your loan application has had to go through underwriting and the property you are buying has been appraised by a professional appraiser. The commitment letter contains all of the information about your loan including the rate, finance charges, amount financed, length of the loan and any outstanding contingencies.
Your loan commitment must be ready by the financing date agreed to in your purchase and sale agreement. If, for any reason, your bank needs additional time to have this document ready, you must get in touch with your attorney, agent, or the seller and ask for an extension. If you cannot get a needed extension you may need to walk away from the transaction. Otherwise, your deposit money is at risk. If you pass the commitment letter datewithout receiving the letter, it’s too late. You either need to close on the set closing date or forfeit your deposit.
The commitment letter may contain contingency clauses that protect you as the buyer. Seller’s agents may ask for a copy of this letter, but it doesn’t allow the seller to back out if they don’t like the contingencies on your commitment letter. next topic »
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