These are the checklists related to Contract Deadline: Loan Application Deadline.
This deadline relates to you formally applying to get your loan. Of course, you've probably done all of the steps for applying EXCEPT provide your Lender the address of the property prior to this point.
IMPORTANT NOTE: Your Lender is not a party to the "Contract to Buy and Sell Real Estate" (in other words they are not signing the contract at all. That means that if they don't show up with the money to fund the purchase at Closing, they are not in default... instead you, as the Buyer, are in default. So, make sure you have a Lender that you know will perform. It helps to use a Lender that your Real Estate Broker has worked with before and has showed up to Closing with funds for the Buyer to purchase.
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- Complete "Loan Application Deadline" checklist
Complete the "Loan Application Deadline" checklist:
You'll usually apply for the loan prior to going out and looking at homes with your Real Estate Broker. However, your Lender will require an address to have a completed loan application. For the "Contract to Buy and Sell Real Estate" we typically use "MEC + 2 Business Days" to get your Lender a full, complete with address of the property, application.
- If you haven't already selected a Lender, ask Real Estate Broker for list of possible Lenders
If you haven't already selected a Lender (which in most cases you will have at this point), then ask your Real Estate Broker to suggest 3 possible Lenders to contact for financing your home purchase based on the types of loans you're considering.
You're welcome to use whichever Lender you choose (from the Real Estate Broker's recommendations or your own), however... you should realize that making sure your Lender performs if your responsibility.
In other words, if your Lender does not show up on the day of closing with the money for whatever reason, you are still in default on the "Contract to Buy and Sell Real Estate" (not your Lender) and you are at risk of losing your Earnest Money (and specific performance in the unlikely event that box is checked on the "Contract to Buy and Sell Real Estate"). Another way of saying this is: your Lender is not a party to the "Contract to Buy and Sell Real Estate" and so they have no consequences in the "Contract to Buy and Sell Real Estate" if they don't perform.
So, consider "testing" a new Lender carefully.
- If you have not already done so, interview 3 Lenders
If you have not already done so, talk to 3 Lenders to determine which one you'd like to use.
Ask your Real Estate Broker for recommendations.
You may want to consider at least reading through the Mortgage Broker Interview Questions for some ideas of what you might want to ask:
Mark complete once you've talked to 3 Lenders of if you've already decided which Lender you plan to use.
- If you have not done so already, determine your Lender
Decide which Lender you will use to finance your purchase.
You can ask your Real Estate Broker for recommendations.
Mark this task complete once you've decided on a Lender to use.
- If you have not done so already, apply for loan with Lender
Make an application to get qualified for a loan with the Lender you've decided you're going to use.
Some people will opt to get quotes from multiple lenders. If you're going to do this, compare everyone on the same day so the rate is the same.
Also, have the Lender you think is most likely to be the one you'll go with pull your credit and then tell the other Lenders you're comparing what your credit score is. If you decide to go with them, you'll let them pull your credit then.
If you need a recommendation for a Lender ask your Real Estate Broker.
Mark this task complete once you've applied for a loan and been approved with the Lender you plan to use.
- If you haven't done so alreayd, send copy of "Contract to Buy and Sell Real Estate" to your Lender
As soon as your "Contract to Buy and Sell Real Estate" is accepted, make sure your Lender has a copy so they can complete your application and start working on getting your financing approved and through under-writing.
- Complete loan application with Lender
- Pay Lender for Appraisal
- If you haven't done so already, pay Lender for Appraisal