Financing 101: A step-by-step guide.
With your Joyner REALTOR® by your side, closing doesn’t have to be complicated.
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CLOSING STEPS • Review and sign
CLOSING DOCUMENTS • Closing disclosure.
AFTER THE CLOSING After the settlement, your
Choose Your Lender You can select your own financing partner, or we can put you directly in contact with the friendly mortgage loan officers at Virginia Credit Union. Select The Type Of Mortgage Your mortgage loan officer will talk with you to learn about your individual situation and help you evaluate your options. You should consider getting pre-qualified for a set loan amount. A pre-qualification letter is an important tool that says to the seller you’re serious about your intent to buy. Apply For Your Loan You should apply as soon as you have a ratified sales contract. An initial disclosure package, which includes a loan estimate, will be sent to you containing important information and documents for you to review, sign and return to proceed with the processing of your mortgage. This starts the mortgage process.
Loan Processing Once your mortgage loan officer has your signed documents and application deposit to proceed, they will order an appraisal and preliminary title work for the property. Guiding you through this stage of the process will be your loan processor, who will work closely with your loan officer. Underwriting And Loan Decision The loan decision involves reviewing the property, your loan application information and documentation, the amount you are requesting and the specific loan program requirements based on your income, debts and assets. You will be notified of a conditional approval as soon as it is available. Once final approval is given, your loan will be prepared for closing. Document Preparation And Loan Closing Before your closing with a Virginia Statewide Title Services (VSTS) attorney, the lender’s closing department will prepare and send you an initial closing disclosure for your review. This is a statement of loan terms and closing costs, which includes funds you will receive and those you may need to provide for closing. They will also prepare your loan documents and send them to the settlement attorney handling your closing.
This includes an itemized listing of the final fees and other costs charged in connection with your loan. These numbers should correspond to the items listed on the loan estimate. • Note. This is the document you sign to agree to repay your mortgage. The note provides you with the details of your loan, including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments. • Deed of trust. This secures the note and gives the lender a legal claim against your property if you default on the note’s terms. The deed of trust restates the basic information contained in the note, as well as details your responsibilities as a borrower.
VSTS settlement attorney will record the deed of trust at the local government clerk’s office. This is the legal transfer of the property and may take a day or two after closing to be completed. • Official ownership. After the transaction has been recorded, the VSTS settlement attorney will wire the funds to those owed money from the sale. It is at this point you become the official owner of the home.
settlement papers. Your VSTS attorney reviews the closing disclosures and other documents with you, answers any questions you may have and asks you to sign various documents. • Pay Closing Costs. If everyone agrees that the papers are in order, you or the seller submits a cashier’s check to the VSTS settlement attorney to cover closing costs and your down payment, if applicable. • Wire funds. Some settlement attorneys request that funds be wired prior to the closing date. Be sure to ask in advance to verify the method of payment, to allow time for you to arrange a wire transfer if needed. • Receive keys. You receive the keys to your new home. Congratulations!
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