CodeMark TV Episode 22
We’re talking about the underwriting process. You’ve made an offer, it was accepted and you started the sales transaction (typically 30 days / four weeks). We’ve talked about week one and week two, and now we’re in week three.
What is week three?
Week three, just to keep it simple, is when you order all your third party items, such as, ordering an appraisal. What’s an appraisal? Well, you’re going to go ask the bank to some money for this house you want to buy, and the bank wants to make sure that this house you want to buy is worth what you’re paying for it; there’s your appraisal.
Another thing, you’re going to be working with a title company. The title company is the nucleus in the entire real estate and mortgage transaction. You’ve got the real estate side, you’ve got the mortgage side; when you close, you’re going to close at the title company.
When you get with the title company, your mortgage professional will order things such as the tax certificates on the property, the title commitment, make sure that the title commitment has no clouds, and it’s clear; those are other pieces.
And then the last thing.
Your loan officer will probably say “we’re getting pretty close to closing, you might want to shop around for some insurance.” So you’ll call up your insurance agent and say “I’m buying a house at such and such price, what is my hazard insurance policy going to look like for that?” Hazard insurance, aka, homeowners insurance.
So again, there’s three items you can count in for week three and it’s all third-party details; ordering appraisal, getting your title details, and then getting with your insurance agent to get an insurance policy.
Next week, week four of the transaction, should be when you’re cleared to close. You’ll get all of this stuff and it gets all compiled nice and neat and sent in to the underwriter and they say that they like it; clear to close.
We’ll talk about that next time, until then, you can catch me all the time though, all right? You can catch me on Facebook Live, Friday, Lunch with Mark, and you can catch me here, on Youtube on CodemarkTV.