Home buyers: Don’t be stressed about what happens between mortgage loan application and before final loan commitment

For many home buyers, the time between submission of loan application and lender’s loan commitment can be one of uncertainty and stress.

Understanding the process can help to reduce the stress. During this time, be available if the lender needs more information during the processing period. Your quick response to requests helps to keep the process moving on schedule.

After your loan application is completed, your lender will begin to verify all the information you’ve provided which can take from 1-6 weeks depending on the type of mortgage program, where the home is located, and other factors. Your loan officer can give you an idea of the timeframe.

Within 3 days of completing the application, your lender must give you an estimate of your closing costs which will include origination fees, mortgage insurance, title insurance,  and other fees. You’ll also receive a statement of your estimated monthly payment. The total cost of all finance charges is shown stated as an Annual Percentage Rate (APR). The APR is the dollar amount of finance charges you pay either up front or over the life of the loan.

After the lender approves the loan, you will receive a commitment letter stating the terms of the loan. Be sure to carefully read the letter and understand the conditions you will have to satisfy.

Once the commitment letter has been received you are ready to finalize the details required for the closing.


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