Homeowners insurance-paid by buyer for fire/hazard insurance
Loan fees-origination and processing fees charged by lender
PMI-some lenders require a private mortgage insurance
Prepaid interest-prorated depending on time of the month the loan closes
Property Inspections, Pest Inspection/Correction-termite report
The Buyers
Tenders a written offer to purchase (or accepts the Sellers counter-offer) accompanied by a good faith deposit amount.
Applies for a new loan, completing all required forms and often pre-paying certain fees such as credit report and appraisal cost. Approved and signs the escrow instructions and other related instruments required to complete the transaction.
Approves the preliminary report and any property disclosure or inspection report called for by the purchase and sale agreement.
Approves and signs new loan documents and fulfills any remaining condition contained in the contract, lenders instructions and/or the escrow instructions.
Deposit funds necessary to close the escrow. Approves any changes by signing amendments in the escrow instructions.
The lender (When applicable).
Accepts the new loan application and other related documents from the Buyers and begins the qualification process.
Orders and reviews the property appraisal, credit report, verification of employment, verification of deposit(s), preliminary report and other related information.
Submits the entire package to the loan committee and/or underwriters for approval. When approved, loan conditions and title insurance requirements are established.
Provide a Loan Estimate/Closing Disclosure Form describing terms of loan and applicable closing cost.
Deposits the new loan documents and instructions with the escrow holder for Buyers approval and signature.
Reviews and approves the executed loan package and coordinates the loan funding with escrow officer.
