Home Buddies - Houston Credit Repair Coach for Investors and Homeowners

A Behind The Scenes Pass to Home Loan Processing-Cont’d

By Ray Peña, Texas Loan Officer

Welcome back! This week we are going to continue our conversation on home loan processing. Keep in mind that the information provided is a quick glimpse into the detailed world of underwriting a home loan. We could go on with detailed conversations about each section, but for now, we have our hands full as it is. With the recent house bill changes affecting down payment assistance programs and the viability of the foreclosure lifeline in question, the mortgage industry is still making adjustments. However, one thing is for certain, for now at least, all files must under-go processing.

Section 4 – Clear to Close
Now that conditions are met, the underwriter will send the file to the closer. The closer will review the file, make sure conditions are cleared, and communicate with the title company. Once the closer feels the file is complete and meets the lender’s standards, the closer will issue a Clear to Close (CTC). Now that your (mortgage professional) MP has a CTC the MP will finalize documentation needed by the closer. Mind you, that while this is going on, your MP will have been updating all parties including the third party partners, and coordinating a closing date.

Section 5 – Closing Means Funding
You have a closing date set and you, your Realtor, and your MP meet at the title company for closing. Do not be alarmed, but be prepared. The escrow officer will walk in the room with a ream of paper for you to sign. Well, maybe not that much, but a significant amount. These documents will range from an updated loan application the deed of trust, promissory note, property tax info, etc. Once you have asked all your questions, gone over the information and signed the documents, the escrow officer will leave the room, make you copies and come back and congratulate you on your home purchase. Way to go!

Funding
Once you leave the title office, they will in turn notify the lender that all documents have been signed and release funds appropriately. Seller receives proceeds if any, third parties are paid, any liens the seller may have had are satisfied, as well as your MP’s compensation is finalized. Last but not least, your new mortgage will come into affect, making you a very happy person. Down the line, the title company will forward the signed deed of trust and promissory note to the county clerk’s office to be recorded and take care of the last few details to finalize the transaction.

So now that we have completed your behind the scenes pass to home loan processing, don’t feel too overwhelmed. Finding the right Mortgage Professional can help tremendously in the home buying process and the best route to take is to work with the best in the business. Mainly they will have determined who they work best with to get the job done, and two, they will know how to make the process as smooth as possible for the buyer. This is a business of relationships, so developing and maintaining those relationships is paramount.

Next week we will talk more about pricing and rates. The best way, in my humble opinion, to discuss this topic is to be very upfront about the costs associated with closing a home loan. There are negotiable costs and others that are the nature of the business. So come back next week and check it out. Oh, by the way, if you made this far down, feel free to drop a line or two – comments, topic suggestions, questions, thoughts, etc.

Ray Peña is a mortgage consultant for Nation’s Bankers Mortgage in Houston, TX. Ray is a native Houstonian whose office is located in the Houston Heights. Feel free to contact Ray at raympena@gmail.com