Before You Close
Before you close, your lender will arrange for a home appraisal and verify your homeowners insurance. Meanwhile, your lender will be working to process all of your paperwork and approve your loan. Here’s what you need to know before you close.
The Home Appraisal
Your lender will generally require a home appraisal. During this process, your lender arranges for an appraisal 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.
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.
Approving Your Refinance Application
During the application 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 your lender 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 your lenders team.
Here are the steps to expect 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 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 lender 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, your lender will 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. You may also be able to finance your closing costs to avoid bringing additional funds to closing.
Final Steps Before Closing
- Review the final estimates of your closing costs.
Make sure you understand everything you’ll need to bring to your closing. Contact your mortgage banker with any questions.
- Prepare a certified check or money order.
If you’re not rolling your closing costs into the new loan, you’ll need to bring a certified check or money order—not a personal check—to cover your closing costs.