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While we're working on approving your loan application, there are a few important steps to take to make sure your home is in good condition and sufficiently insured. Here's what to expect from the last few steps before closing on your home.
Protecting Your Home Investment
In addition to getting your home inspection, completing these steps will help protect your new investment.
The Home Appraisal.
Your lender will generally require a home appraisal. During this process, your lender will choose a certified professional to estimate the value of your home.
The estimate is created using information about the condition of the home and the values of comparable properties nearby. The appraised value of the home should be greater than the loan amount that you've applied for, otherwise your loan could be denied.
The Pest Inspection.
The pest inspection is separate from the home inspection. Here, a pest inspector evaluates any damage caused by termites and other organisms like mold. If the inspector finds a significant infestation and recommends extermination, you can negotiate with the seller about who will cover that cost.
All lenders will require that you have homeowners insurance, which covers the cost of repairing or rebuilding the house in case of damage or catastrophe. In some areas, you may also be required to get flood insurance.
Shop Around for Quotes.
We recommend getting quotes from several companies, both large and small. Ask friends and family if they can recommend an insurance company. Get a quote from the company that provides your auto insurance, too, since they may give you a discount for having multiple policies.
If you're having trouble finding coverage, your real estate agent can usually recommend an insurer that specializes in hard-to-insure homes. Installing security measures, such as a home security system, may earn discounts on insurance rates.
Approving Your Mortgage Application
During the home inspection process, a team of experts will work together to ensure that your mortgage is processed quickly, accurately and efficiently.
At this point, most of the record collecting is behind you, but we may contact you for any additional information as your application moves through review. A quick response will help keep your loan file on track for final approval.
In most cases, your mortgage banker will be your primary contact, although you may be contacted by other members of our team.
Here are the steps that we'll be working through leading up to your closing:
- A mortgage banker will review your information and request any additional documents that we need.
- A home loan analyst will place orders for a property appraisal, a survey of property boundaries, a flood determination, a title search and title insurance.
- The underwriter will review all of your information and grant a final approval on your loan.
- The closing agent will put together all of the documents for your closing package and ensure that all fees and other closing payments are accurately documented.
- In most cases, the closing agent will establish an escrow account for payment of necessary insurance and real estate taxes.
- As the final step, the closing agent authorizes the mortgage funds for disbursement.
When everything has been reviewed and verified as complete, we'll issue a Final Approval. Your Chase Loan Processor will contact you to schedule your closing, review final fees and let you know the amount of the cashier's check you'll need for closing day.
Final Steps Before Closing
- Resolve title questions.
If your title search turned up liens on the property, these will need to be resolved before closing can occur.
- Conduct a final walk-through.
Your final walk-through ensures that any agreed-upon repairs have been completed by the seller and that the home is still in the condition you left it.
- Review the final estimates of your closing costs.
Make sure you understand everything you’ll need to bring to closing. Contact your mortgage banker with any questions.
- Prepare a certified check or money order.
You’ll need to bring a certified check or money order—not a personal check—to cover your down payment and closing costs.