By: Aaron Sapp
NMLS # 447059
Once you choose your dream home, why wait longer than you need to before getting your hands on the keys?
When you prepare to move into your new home, you might find a moving checklist helpful, so that you can keep track of where your dishes are packed and when to schedule the moving truck. At Illinois National Bank, we’re also checking off our own list to help you achieve your dreams of home ownership.
After your contract has been accepted on your new home, there are numerous steps to receive loan approval from your bank, and most people don’t know what to expect. However, each of these steps is well-documented like a checklist, and at INB, we make our expert marks on this list without keeping you waiting around.
Wondering what happens next after you make an offer on a house? At INB, each of our lenders follows the exact same steps to get from contract to closing on your home mortgage:
- The first checkmark comes when you contact us to let us know you have selected a home and are ready to apply for a loan. Once you complete our online application, one of our lenders will give you a call to discuss your loan program and interest rate options.
- You’ll receive preliminary disclosure documents to sign and return, along with a list of items we’ll need to verify information you provided during the application process. We can send these disclosures via email or mail, or you can pick them up at INB, where you’re always able to discuss any questions with a lender.
- The third item on our checklist comes after you get the preliminary disclosure documents package. We need you to compile your most recent pay stubs, bank statements, and W-2s, as well as a copy of the front and back of the Earnest Money Check you wrote when you made the offer on your home. If you’d prefer, you can provide a copy of your bank statement with an image of the check showing that it has cleared the account.
- Now we can order an appraisal of your new home! An appraisal from a licensed appraiser who is familiar with homes in your area will ensure that you’re paying a fair value for your new home. Title insurance is also required, and we encourage you to work closely with your real estate broker or seller to get the title work and deed to transfer title ordered in a timely manner.
- Here’s a mark we don’t want you to check off: more debt. Because we’re required to check your credit report again before your loan closes, we suggest that you don’t open new or add to existing debt because any new debt could affect your approval.
- Your file will now move to one of our processors who will review the documentation we have in your file and make sure we haven’t missed anything.
- All homeowners need to protect this large and important investment! At this point, you’ll need to contact a property casualty insurance agent to purchase a homeowners insurance policy and then provide our processor with your agent’s contact information.
- We’re moving right along on our checklist – time to start thinking about paint colors while INB focuses on the underwriting process! Once the processor receives all the paperwork — including your signed disclosures, appraisal and title work — the file will move to underwriting. We may need a couple of minor items after the initial approval from underwriting; our processor will call you if needed.
- Once the loan is cleared for closing, we’ll contact you to coordinate your closing date and time. With that scheduled, our closing department will draw up a preliminary Closing Disclosure. This will be provided for you at least three days prior to closing so that you can review it with your realtor and ask your loan officer any questions. Any requests for changes need to be communicated as soon as possible as some changes may require an additional three-day review and delay your closing.
- If there are no changes, our closer will finalize the Closing Disclosure, and we’ll call you to go over the final figures. Then you’ll need to get a cashier’s check or wire the final amount due to INB.
- The day of closing! Your closing will take place at the INB branch that is most convenient for everyone involved or at the title company. Your lender will go through each document with you and answer any questions you might have.
- Last but definitely not least: time to celebrate your new role as homeowner!