The process of closing a mortgage can be stressful, even for those borrowers who have purchased homes in the past.
Closing is the final step of a purchase, refinance or second mortgage. In a perfect world, it goes smoothly and as planned. Unfortunately, most closings involve moments of panic and uncertainty, requiring you to scramble to obtain documentation at the last minute.
Intercap Lending believes that closing a mortgage shouldn’t be overly stressful or filled with surprises. That’s why we take a highly proactive stance with our clients to make sure every foreseeable detail is handled.
The Underwriting Process
After formally applying for a mortgage, your application is submitted for underwriting.
The underwriting process involves obtaining an appraisal and title report for the home you’re purchasing and verifying all of your financial, employment and income information.
The underwriting process is necessary for your lender to determine that your loan is a good risk. During this process, you may be asked to verify or clarify certain details about your financial history, debts or income.
Once the underwriter signs off, your mortgage will proceed to closing.
Escrow and Title
In addition to your lender, you will deal extensively with the title and escrow company handling your transaction. The escrow agent will work closely with you, your lender and real estate agent to ensure that your loan closes successfully.
The escrow agent will request a variety of documents from you, including proof of your identity. The escrow agent will provide you with a full accounting of your transaction in advance of closing, so you know how much money you must bring to close.
You will be responsible for getting your funds to the title company in advance of closing your mortgage. Your lender will forward the loan documents to the escrow officer, who will schedule you to come in and sign.
Once you have signed all necessary documents and provided your funds to the title company, your lender will forward the funds to the escrow agent. The escrow agent will finalize the transaction and record the deed to your new home.
Final Steps for Closing a Mortgage
The final days and hours of your transaction can be stressful, as you wait for all the pieces to fall into place.
You will provide information to the title company about your homeowner’s insurance company and any other information necessary for the title company to close the mortgage.
Although closing a mortgage can be stressful, having an experienced mortgage broker on your side can make all the difference in the world.
Intercap Lending, based in Orem, Utah, is committed to making the entire process of applying for and closing a mortgage. Call on us for all of your Utah mortgage lending needs.