It’s Time To Provide The Earnest Money Check...
At the time your offer is accepted, you will be required to make a deposit in the form of a personal check or cashier’s check. The amount deposited will be kept in the trust fund account stated in the contract or to the seller. This money represents your sincerity in the attempt to purchase and is fully refundable if your loan is not approved, or if the seller does not meet some other condition of the contract. You should anticipate a minimum of $1,000 for homes under $100,000.
In homes over this price range, expect to deposit one to five percent of the purchase price. The check will be made out to name stated in the contract. This earnest money will be credited to you at closing as part of your down payment and/or closing costs, if it exceeds those amounts, the balance will be refunded at closing.
You Will Officially Apply For Your Mortgage
Now that you have an accepted offer, you will meet with your lender within 2-3 days to officially apply for a mortgage loan. The application normally takes about one hour. At this time, you will be required to pay in advance for your credit report (usually $60-75) and the appraisal (usually $350-450). This is required by the lender to determine that the amount of the loan does not exceed the value of the property. These are normally the only charges required by the lender prior to the closing.
Your loan originator understands your concerns and is there to help with the approval of your loan. Feel free to ask questions at the loan application about anything that you do not fully understand. Also, you will receive a GOOD FAITH ESTIMATE OF CLOSING COSTS at this time so you won’t have any surprises at the time of closing.
Total time from loan application to loan approval averages between 20 and 45 days or more depending on the loan type, market conditions, and/or the complexity of verifying the borrower’s information and qualifications.