STEP 4 – A WALK IN THE PARK
November 13th, 2008 categories: Buyer Strategies, Mortgage & Finance
[NOTE: Rob Martinson continues his series on getting the home mortgage process right for home buyers in Northern Virginia. His previous installments are in our Mortgage & Finance archive.]
For you, the buyer, this is a pretty easy step. It’s really like an easy stroll in the park. 
Of course most don’t conclude with you owning a home, so the walks you are probably more familiar with seem to pale in comparison
At this point your loan officer should be putting the final touches on your loan. In today’s market, once all conditions are cleared, many loans are required to go back to underwriting for final inspection. The underwriter is going to do a quick double check of everything in the file to make sure the documents they asked for have been properly collected. While this may seem a simple task, remember that underwriters keep their job only if the clients they underwrite keep their homes. If they approve a file today and the client trips, falls, and defaults out of the gate, they probably will not be working too much longer.
Your loan officer is going to work very closely with the underwriter to explain everything in the file. If something makes sense to the loan officer, it doesn’t necessarily make sense to the underwriter. As a result, this can be a very meticulous (although not too difficult) time for your loan officer. More than likely, he or she will probably come to you to ask that some form be signed, an extra bank statement be submitted, or some explanation be made for something in the file. This is normal and should not be regarded as a reason for panic. With the government and investors scrutinizing lenders with a magnifying glass that would make the Hubble Telescope look like a toy, your loan officer has to make your file as squeaky clean as possible.
Once the underwriter gives their final approval, your loan officer can generate a final approval letter for you. With this in hand, not only are you approved, but so too is your property. I would say it is about time to go to closing, wouldn’t you?
This post by Robert Martinson. You can contact Robert at Robert.a.martinson@bankofamerica.com]
