The Lender has reviewed your personal documents and signed disclosures, what next?

Verification of Employment

This happens in many different ways.  The lender has a verification of employment form that is faxed to your employer and this document is filled out and faxed back and the original mailed to the loan processor.  The Processor who processes your loan may also use an audomated computer system called the work number for everyone who charges a fee to collect this information.  Most all lending instutions as a part of quality control makes a final telephone call on or about the day of closing to reverify employment status.

Verification of Deposit

A verification of deposit form is sent out to your bank to verify funds associated to the amount needed to close your loan and reserves amounts that will be left over after funds for closing are required.

Verification of Rental History

A verfication of Rental History is sent out to your landlord verifying your payment history on your rent if you do not currently own a home. If you own a home, the lender may choose to send out a verification of mortgage history if the payment history cannot be reviewed on your mortgage credit report.

Request for Tax Return via 4506

If you are self employed or recieve commissions as a part of your income, the lender may choose to verify the tax return you submitted at application against what was filed with Irs.  This is order through different tax service companies available.

Request for Certified Copy of Realestate Contract and Request for Title Commitment

Once you have found the home you will purchase you will enter into a negotiated contract with the seller.  This is done with the seller directly if the property is being sold for sale by owner. If the property is being sold through a realestate company, the realtor or realtors involved with negotiate this contract with and for you. Once this has transpired you are required to deposit "good faith earnest money" This money is a deposit held usually by the Title company that makes your contract a legal and binding contract.  The lender then requests a copy of this contract and requests for title commitment to insure the title to the home. The title company also provides certified property tax certificates to the lender for correct calculations for your mortgage servicing company's escrow account figures and to determine your correct total mortgage payment including taxes and insurance.

Correction or update of Mortgage Credit Report

In some instances information being provided by the credit bureau agencies is not accurate. Some information is not fully updated or there are errors in the reporting of the information. The lender will request that these updates be made to have a clear reprenstation of your credit worthiness.

Collection or debt payoffs

If the underwriter finds it necessary to require you to pay off an existing debt or collection. A payoff request may be made on your behalf to provide this information at time of closing.

Ordering of Appraisal

The lender is required to check the validity of the value of the property and make clear acknowledgement that the property is in acceptable condition.  The appraisal is ordered from an approved state liscenced appraiser depending on the loan type.

Ordering of a Survey

The lender is required to check the validity of the property lines associated to the property being purchased. They check for any encroachments that might be associated.  The seller's existing survey may be used if no changes to property have been made. An example would be a new fence or a pool.  If you are in a flood zone, the surveyor will need a request from the lender to order an elevation certificate to give to your insurance agent for flood insurance.  Sometimes the existing seller may already have this certificate and can be used.

Ordering Homeowner's Insurance

Once you have chosen the Insurance carrier of your choice the lender requests for an insurance binder outlining what your coverages on the property are and when the coverage will commence.  If you are in a flood zone you will need flood insurance this will require the surveyor to provide an elevation of certificate to determine the amount of risk the coverage will involve.  If you are in a windstorm area windstorm insurance usually will be required.

If you are using a down payment assistance product associated to your purchase

Depending on the product, other supplimental packages are created for these outside agencies who are granting down payment assistance.