6. Waiting for home appraisal: Appraisal After the bank accepts the loan, it must conduct a house inspection. If there are no problems with the house inspection, or the problems found during the inspection have been repaired, and the buyer has re-accepted the loan, the bank will arrange for a dedicated person to conduct a house valuation and then confirm whether to approve the loan. Get a mortgage. If the bank's valuation of the house is lower than the price listed on the house purchase contract, the bank will only choose the lower price between the house valuation and the contract price to approve the house purchase loan. Lenders will also require borrowers to purchase house insurance. Even if it is not mandatory, purchasing house insurance is an important means to protect the interests of homeowners. 5. Fill out the mortgage application form Mortgage Application After you have discussed everything with the seller and signed the purchase agreement (Purchase agreement accepted), you need to formally apply for a mortgage (Secure the mortgage). Most banks or mortgage brokers in the United States will use the Uniform Residential Mortgage Application, commonly known as Form 1003 (Form 1003), which is common across the United States. Fill in the type of home loan you are applying for, the loan period, the loan amount, the interest rate, and the information about the house you plan to buy. Detailed information such as address, purpose of loan application, borrower’s personal information, borrower’s job and income, etc. In addition, you also need to provide necessary supporting documents, the latest pay stubs, bank statements, tax forms and other documents. When the bank receives your home loan application, it will generally provide you with a written estimate of the cost of the home loan within 3 working days.
8. Handle real estate transfer Closing Closing (transfer settlement) is the last step in the U.S. home buying process. It takes an average of 45 days from signing the house purchase contract (Offer Accepted) to formal transfer settlement (Closing). On the settlement day, the buyer, seller, and all relevant personnel such as real estate agents, lawyers, closing representatives, escrow representatives, lender representatives, etc. usually make appointments to meet in the Title Company. The title company will be responsible for checking the real estate liens (Liens) and confirming that the seller has full rights to sell. The buyer formally signs a home loan contract and Deed of Trust (trust deed) with the bank. The seller signs the real estate title transfer and the buyer pays the required Closing. After paying the transfer costs, you can get the house keys. 7. View the detailed documentation of the house loan transfer: Closing Disclosure The lender must send the final details (Closing Disclosure) of the related home loan transfer fees to the borrower at least 3 working days before the planned closing date. Closing Disclosure is a form document that includes loan terms, estimated monthly payments, home loan fees and real estate transfer fees, etc. It also lists what fees the buyer needs to pay and what fees the seller will pay. Confirm the details and compare them with the Loan Estimate you obtained previously. If you find any discrepancies, contact your bank for verification.
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