Tuesday, July 17, 2012

Loan Process & Electronic Signature

When shopping for a mortgage lender, some loan officers will lock the interest rate they quoted you for a maximum of 60 days. That's what happen in my case. I locked an interest rate and it is set to expire on its 60 day mark which happens to be exactly two weeks from today.

My loan officer from Wells Fargo is confident they will close on time and are trying to close ASAP. According to him, we are in our final stages and I believe him. One thing that slowed down the process was that my student loan service provider was transferred from Direct Loans to EdFinancial. The bank thought I refinanced by student loan, but clarified that the service provider was transferred. The bank had to send a validation form to the service provider in order to get clarification on the status of the loan since my credit report is showing "closed" instead of "transferred."

On the other hand, I've been going back and forth with the loan processor regarding a deposit of $1,000 that I cannot supply supporting documents for. This is why I tell you that's it is very important to keep track of your deposit slips and a copy of the check. When I deposit checks, I deposit them as cash in order to get immediate credit rather than waiting days, sometimes weeks, for the check to clear.

When applying for a mortgage loan, the bank will let your borrow the money to purchase your home, but they will have conditions you will have to meet in order for them to finance the money to you. These "conditions" are items requested by the underwriter for additional information in order to make a decision. When your mortgage banker asks for conditions, don't delay, get it to them ASAP in order to get your loan processed sooner. Examples of conditions are, verification of employment, last two paychecks, updated bank statements, and so forth.

I am anxious to know when I will be closing. My official closing date should occur on or by August 6, 2012 if not, I will be charged a $100 per diem for everyday after August 6, 2012 imposed by the seller. I have complete confidence on Wells Fargo that they will be able to close on time.

A great tip that I share with all my family and friends, is getting forms filled out and even signed electronically!! This great FREE website I found is called signnow.com and it's great! I've been able to sign real estate forms requested by seller, type directly into a PDF, and so much more! They have this new thing where you can get your forms notarized, but I haven't tried that service yet.

I will continue to wait and see what else the bank needs from me, and hopefully we will be closing in the next few days.....

1 comment:

Julia Patrick said...

The use of electronic signature by loan lenders sounds really great! Although the special effects of mortgage issues we are all aware about.