After the underwriting process?

Question

what happens next. If everything is approved through underwriting, how long after that is closing? Exactly what happens at the closing? I'm a first time home buyer and I am not familiar with everything.

Answer 1

After underwriting- you need what we call "clear to close" which mean everything is ok and your lender is ready to close this transaction. Sometimes they can prepare the closing documents in the same day , sometimes they need 24- 48 hours before closing can take place. Right now you need to wait for both sides you and the seller to set time  and the date for  the closing if is different then the date on your contract. Check this info with your attorney or your agent .

Answer 2

If the appraisal has been done and turned in then it won't take very long at all to go to closing.  Usually if you have to wait on anything, it's the appraisal.  At closing you and the sellers and any Realtors involved will meet at the office of whomever is handling the closing.  The lawyer will pass out closing statements and go over each item making sure you understand what you are being charged for and what the seller is being charged for.  He'll ask for a check from you for the amount you are paying and he'll give a check to the sellers if they cleared any money.  The lawyer will have the seller's sign the deed and at some point in the near future he'll take it to the court house and record it.  Before closing you should get a copy of what they expect the closing costs to be.  You will have to sign your name quite a few times at closing because each copy of the closing statement has to be signed by everyone.  The lawyer will walk you through everything and if you are confused about something then ask, that's what he's there for.  Don't be afraid to speak up if something doesn't look right or doesn't make sense to you.  Even lawyer's make mistakes sometimes.

Answer 3

You can own the house 2 days after underwriting approval at the best lenders.  The loan papers are printed out with your info on them. You sign them before a notary. The papers are sent to the bank's funding department.  They wire the money after making certain that you signed every paper correctly.  As soon as the money arrives (1 hour to 10 hours later) , the escrow company pays $10 at the Recorders Office to record your deed.  At that minute, it is your house.  So it would be possible for this to take 2 hours or 10 days.  Depends on how many people are ahead of you in line at the bank. /

Answer 4

After underwriting, the lender adds "conditions" that must be satisfied by your broker, yourself, or whomever is getting you the loan.  Once underwriting is done, that just means you have a "conditional approval."  If you don't satisfy all the conditions, your loan can not be approved.

Once you get full approval and the "clear to close" that's when you know you're ready.  You should get a call from either the closing agent or broker to schedule a time to sign the documents and transfer the deed and get your keys.

At the closing, you get to sign lots of papers, and review lots of legal jargon.  It's nothing super special, mine only took 25 minutes.