What Happens Right Before You Buy Your New Home
You’ve completed your inspection ✅
Your appraisal came back glowing ✅
Why can’t you just close already?!
Listen I get it - as a Realtor we’re JUST as excited as you are to get you to the closing table. Think ultimate cheerleader vibes.
There are a few things that need to happen during this time after appraisal & before closing.
Basically this is your lender's time to shine. They will be in major contact with you prior to closing.
What happens is after the appraisal is received, your file goes into what’s called “underwriting”. This is where it’s reviewed by the underwriters of the bank that determine if the loan conditions have been met. More often than not they will need a few more documents from you
Common documents needed by lenders weeks before closing:
Updated bank statements - it takes time to close a home so if you can make sure your lender has all your updated statements that will save lots of time.
Updated pay stubs
Gift Letters - are you receiving funds from a loved one or family member? Your lender will have a framework for you to use to explain these funds to underwriting.
Letters of explanations - there are all sorts of things that pop up that could need explanation…if the underwriter wants to know… they will ask.
Another major item your lender will need is your home insurance information. Your lender will request this closer to closing from you so give yourself the gift of time to shop & find the best policy for you.
Communication is going to be your largest asset. If something is requested of you, know that it has to go five layers deep before its approved, so time is money at this point.
This is also a great question to ask your lender during the preapproval process…talk about the time in between appraisal and closing….ask them what the underwriting process looks like.
Communication communication communication.
So….how long will it actually take to close after appraisal?
That largely depends on two things
The extent and complexity of the items requested of you
How long it takes you to obtain those items
Be proactive.
Try to be as timely as you can.
Once the underwriting has all the items they requested and are satisfied with the results, you officially have the “clear to close” (meaning your file has final approval from the lender ie YOU CAN BUY THE HOME) and we can schedule your closing! 🥳
In Montana, we close at title companies. Some states use attorneys or closing offices. Regardless of your format, this is where you sign ALL the documents that will transfer ownership of the home to you (and where you pay your monies!)
The process takes about an hour - the title officer will explain to you what you’re signing and when it's all said and done, they will deliver the information to the courthouse and it will be “of record” – basically you’re officially a homeowner! 🎉
Now…..get to moving! 🤗
