What Happens After You’re Pre-Approved?
Because buying a home is both a legal and financial process, you’ll complete a variety of forms and sign a lot of documents. You may feel overwhelmed during the process but read on to better prepare yourself for what happens after pre-approval.
Your Mortgage Application
This is the centerpiece of the process. Your mortgage application will include:
- Your full legal name
- Your income/debt obligations
- Your Social Security number (to obtain a credit report)
- The address of the property you want to buy
- An estimated value of the property
- The mortgage loan amount sought
Once your application is finished, it will trigger the lender to send a Loan Estimate. The lender has three days after the application has been received to provide a Loan Estimate. As the name implies, this document gives you an estimate of your closing costs. While this amount is typically close to what the final payment will be, there may be some adjustments during the process. The Loan Estimate includes costs for:
- Points (upfront fees to lower your interest rate)
- Appraisal
- Title search
- Title insurance
- Survey
- Recording fees
- Attorney fees
- Origination fee
GOOD TO KNOW
A new Loan Estimate is automatically provided when you lock in your interest rate or if there are any changes in circumstances.
A List of Service Providers
Creditors are required to identify settlement services the borrower can shop for (example: pest inspection fee, etc.). The Written List of Service Providers includes at least one available provider per service, the estimated cost and contact information.
GOOD TO KNOW
While you may choose to select a provider on your lender’s list, you also have the right to shop around for service providers not included on your lender’s list.
Learn more at our free homebuyer class!