The Loan Application

Once the purchaser(s) and the seller(s) have agreed on the price and terms of a
contract, the next step is the loan application. I can recommend several lenders who have earned my trust and with whom I’ve had good experiences in the past. PLEASE let me recommend lenders I have worked with and who will give you excellent service with your mortgage process.

Then, a preliminary loan application is completed with a loan originator. The loan
originator’s goal is to expedite all the necessary paperwork and information, including ordering a credit report and appraisal of the property. It is very important for you to get the appraisal as soon as possible. You will need to furnish the lender with the information as outlined on the items needed for loan application page.

The information you provide the lender is confidential. The application generally takes
place at either the lender’s office or at my office. All people who will be on the title as new
owners should be present. The application normally takes about one hour. At this time, you will be required to pay in advance for your credit report (usually about $50) and the appraisal (usually about $450), which is required by the lender to determine that the amount of the loan does not exceed the value of the property. These are normally the only charges required by the lender prior to the closing.

Your loan originator understands your concerns and is there to help with the approval of
your loan. Feel free to ask questions at the loan application about anything that you do not fully understand. Also, you will receive a GOOD FAITH ESTIMATE OF CLOSING COSTS at this time so you won’t have any surprises at the time of closing.

Total time from loan application to loan approval averages between 45 and 60 days,
depending on the loan type, market conditions and/or the complexity of verifying the borrower’s information and qualifications.

Homeowner’s (Hazard) Insurance

A Homeowner’s Insurance Policy (or a Binder), also referred to as Hazard Insurance, will be required to be brought to and paid for at closing.  This is true in absolutely all cases when financing of any type is involved.  Even if you are paying cash for the home, and no one is requiring the insurance, it would be foolish not to protect your investment with Hazard Insurance.  There are many variables to consider in choosing which insurer and which policy best meets your individual needs and preferences. These variables should be carefully discussed with your insurance agent before purchasing the policy.

   For a list of items you’ll need for a loan application.

Marsha Morrison Realty, Inc.

Down to Earth, Down to Business

marsha@marshamorrison.com

Phone 850-893-8810

Text 850-508-8810