In this series we’re talking about what happens during your settlement and some documents you may see and be expected to sign. Three of those documents are loan application and the loan approval and commitment letter.
The loan application is completed when you meet with your mortgage loan officer the first time. It is a documents that includes all the information about you and any loans or financial commitments that you have. It’s a huge commitment for the lender to let you borrow such a significant amount of money. Therefore they gather from you all of this information and check out you and your credit in depth to make sure that everything is in order with you and the home. They will check your credit and the status of all of your loans and make sure they are comfortable loaning you this money and that you’ll repay it. Not that they don’t trust you but it’s a big commitment. At closing you will actually re-sign your loan application which now has all the information they went through with you in a finalized form. Some of the information in the final form may be a little different than it was when you made application and that’s ok it’s a snapshot of when you actually went in and made the original application with them.
Other items you would be signing at closing is the Loan Commitment and the Loan Approval Letter. These two are created once the lender feels confident that you will be able to repay that loan and that the house that you’re buying is what they would want to lend against. They will actually commit to loan money to you as long as all those factors are in the right order. At that point they will issue a Loan Approval Letter. The Loan Commitment Letter sometimes is issued to you before closing and then you’ll sign a final one at closing.
The Loan Approval Letter is exactly what it says. This is where the lender says “okay we’ve reviewed everything and if you sign off on all of our requirements, we’ve approved you for this loan.
We have a lot more information here on our website that we’d love to share with you and we have a package of sample documents we’d be happy to send you in advance of closing to review. That way you can go through some of these documents which will help make the process at closing a lot less intimidating for you. Please ask one of our team members to sent you our Sample Documents Book for review or download it from our website www.footetitlegroup.com.
At Foote Title Group we are committed to making sure you understand everything that’s happening through every step of your closing. We know how overwhelming and intimidating the closing process can be. Purchasing a home or piece of property to build a home is more than likely the single most expensive thing you will probably ever do in your life and whether its the first time or the hundredth time it can be a lot to digest. That’s why we make sure that you know everything that’s going on while we pull all of the pieces together for you. That way when you are ready to sit down at the settlement table you feel comfortable knowing what to expect and when you get those keys you can walk into your dream home knowing, with Foote Title Group behind you, you and your home are protected.