Buying Real Estate in the Napa Valley
The Loan Process
Step 1: The Loan Application
The key to the loan process going smoothly is the initial interview. At this time, the lender obtains all pertinent documentation so unnecessary problems and delays may be avoided. The Realtor opens escrow with the title company at this time as well.
Step 2: Ordering Documentation
Within 24 hours of application, the lender requests a credit report, an appraisal on the new property, verifications of employment and funds to close, mortgage or landlord ratings; a preliminary title report and any other necessary supporting documentation.
Step 3: Awaiting Documentation
Within one to two weeks, the lender begins to receive the supporting documentation. As it comes in, the lender checks for any problems that might arise and requests any additional items needed.
Step 4: Loan Submission
Once all necessary documentation is in, the loan processor assembles the loan package and submits it to the underwriter for approval.
Step 5: Loan Approval
Loan approval generally takes anywhere from 24 to 72 hours. All parties are notified of the approval and any loan conditions which must be cleared before the loan can close. The loan approval is the beginning of the closing process.
Step 6: Documents are Drawn
With 1 to 3 days after the loan approval, the loan documents (including the note and deed of trust) are completed and sent to the title company. The escrow officer will make an appointment for the borrowers to sign the final documents. At this time, the borrowers are told how much money they will need to bring in to close the loan. Payment must usually be made by a cashier's check.
Step 7: Funding
Once all parties have signed the loan documents, they are returned to the lender who reviews the package. If all the forms have been properly executed, a check is issued to fund the loan.
Step 8: Recording
Upon receipt of the loan funds, the title company will record the legal documents necessary to transfer the property into buyer's name. At the same time, the deed of trust is recorded to show the new loan on the property. Escrow is now officially closed and you now own your home.
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