We got you to the second checkpoint, In contract, in our previous post.
Now we tackle the third & fourth checkpoints on your way to home ownership: Contract Received & Sent to processing/underwriting.
Once we have received a copy of your purchase contract, we will work quickly to prepare the initial application and disclosures for your signatures. Most of the disclosures can be signed electronically. There are a few, depending on which lender we are submitting your loan to, that you will have to print and sign with a real pen.
After we have received the signed application and disclosures as well as the items needed to get your loan submitted for processing and initial loan approval, we will get your loan packaged and submitted to the lender for underwriting within two business days and will send you a confirmation via e-mail so you know where we are at in the process.
Your processor will also request any third-party conditions that will be needed to fund your loan—verifications of employment, preliminary title report, insurance binder, and so on. All of this happens behind the scenes.
Once your file has been received by the lender, we are in position to lock in the interest rate on your loan. We will call you to go over your rate lock options.
You can choose to float or lock your loan when it comes time. In general, we highly recommend locking in your interest rate as soon as possible so that you know what your monthly payments will be when it comes time to close. Locking in your interest rate means that it will not go up while your loan is in process. When you float your loan, you are gambling that interest rates will improve before closing. This can be dangerous as interest rates tend to improve slowly over the course of time but can increase very quickly.
Next, we will tackle Checkpoint 5 – Loan approval.