Reaching a significant milestone in the loan process occurs when the underwriter approves your mortgage loan application. This confirmation provides assurance that you have secured financing for your home purchase. Despite completing this lengthy and intricate process, there are still several steps remaining before you obtain the keys to your new home. Let’s delve into what follows the approval of your home loan and your responsibilities thereafter.

Receiving a Commitment Letter From Your Lender:
Following loan approval, you’ll receive a commitment letter from your lender. This document outlines the loan terms and details your mortgage agreement. It provides information on your monthly expenses and the annual percentage rate of your loan. Additionally, any conditions that must be met before closing will be specified, such as providing copies of your homeowner’s insurance policy and title insurance. You’ll need to review, sign, and return the letter to the lender within the specified timeframe.

Reviewing Your Closing Disclosure:
Approximately three days before the closing date, your lender will send you the Closing Disclosure. This document itemizes all closing costs you’ll need to pay on the closing date. It’s essential to compare this document with the Loan Estimate you received during pre-approval. If you notice any discrepancies, inform your lender promptly. The Closing Disclosure includes detailed information such as loan terms, closing costs, loan calculations, and other pertinent loan disclosures.

Preparing for Your Closing Date:
Your closing typically occurs at the escrow agent or title company’s office, and you may need a lawyer present, depending on state requirements. During the closing, you’ll sign paperwork accepting the terms of the mortgage loan. Once all paperwork is signed, funds for the home purchase will be transferred. The deed, signifying ownership of your home, should be transferred to your name, typically held by a trustee until your mortgage balance is paid off.

Finalizing the Process:
After closing, you’ll receive the keys to your new home, and the property becomes yours. Any specified move-in date will be determined, and the paperwork will be completed. Ultimately, with all formalities completed and ownership transferred, you can begin enjoying your new home.