Initial Underwriting Approval
The Underwriter ultimately decides what is required for the full loan approval. The Underwriter will review the file and send the Processor a list of “conditions” that need to be met prior to closing the loan. The number and severity of the conditions depends on a variety of factors (such as program type and complexity of the file). Most of the time the conditions are minimal and administrative.
About to Happen
There are a number of events that are about to take place. The timing for each varies from loan to loan, but know that they’re happening very soon. You will need to be ready to:
- Submit Conditions
- e-Sign the Initial Closing Disclosure (CD)
- Provide Addendum and Amendments (if applicable)
As an FYI, we will be updating your credit report and doing another Verification of Employment (VOE) with your employer.
The Processor will update your Floify Document Portal to request additional documents from you should any conditions require your attention. Please provide any outstanding paperwork as soon as possible since we will be unable to move forward without them.
e-Sign the Closing Disclosure
The Initial Closing Disclosure (CD) document will be emailed to you after the initial underwriting approval. Check out the Closing Disclosure (CD) page for details on the Initial CD and Final CD. The timing of when you receive the CD email will depend on whether certain third party items have been received. You will be required to sign the CD immediately upon receipt. This is extremely important as there is a mandatory waiting period that has to occur before closing and the clock doesn’t start until EVERYONE signs the initial CD.
Provide Contract Addendum and Amendments
Please let us know ASAP if there are any new addendum or amendments to the contract. Examples include updates to Seller Concessions, a reduction in sales price, any lease-backs, etc.). Also, let us know if there are any repairs or issues with the home that may not be completed before closing.
Credit Report Update
Withing a few days of closing Lenders Update Your Credit Report to reflect the most recent credit balances and procure a list of any new credit inquiries. Hopefully you’ve followed the Do’s and Don’ts of Home Loans and won’t have any issues. Regarding the updated credit balances, underwriting will ensure that you still qualify with the updated payments. As for the the list of credit inquiries, they will reveal if any new “credit pulls” have occurred since the initial credit report. New credit inquiries will require you to send in an explanation letter. Additional documentation will be required if any new credit was open.
Another Verification of Employment
Within 24 to 48 hours of closing we will contact your employer to verify that you are still employed. (So don’t turn in your two-week notice the day before closing). There’s no action required from you for this; we just want you to know that we’re doing it.
Your Processor will submit the file back underwriting for the final loan approval once all conditions have been procured. The Underwriter typically reviews conditions withing 24 to 48 hours. Assuming the submitted paperwork satisfies all the conditions (which is true the vast majority of the time) the Underwriter will issue the “Clear to Clear” or “CTC.” By contrast, more paperwork may be required from you if the submitted conditions raise additional questions.
Once a file Cleared to Close it is assigned to a Closer within 24 hours. The Closer will work with our document preparation attorneys to send closing instructions to the title company. Those “instructions” guide the Closer and the title company in collaboration to finalize the Closing Disclosure. The title company will email the Closer and the Processor the Final CD once the it has approval from all parties. At that time the Closer will send title the closing package and the Processor will email you the Final CD.
Now check out the Closing Day Overview page to learn what to expect and how to prepare for closing.