The Orlando, Florida Home Loan Funding Process

As you go through the process of finding the right Orlando property, you’ll eventually get to a point where you and the home seller will come to terms on a mutually agreeable price, a desired closing date, whatever terms you both decide are reasonable.

This is where your Orlando mortgage professional really needs to shine! You’ll want to be sure that they keep in contact with all the different parties involved with your mortgage and home purchase so that everyone stays up to speed and on the same page.

This step in the Orlando mortgage funding process involves your real estate agent contacting the escrow company listed in the purchase contact and getting them to open up title. The money you put forth as an earnest deposit will be deposited into an escrow account and will be put towards your down payment and/or closing costs.

Without question, you’ll want to be sure that a home inspection is performed on the house you choose to buy. Always better to know what you’re getting into up front. Typically, you’ll have about 10 days to have this done and preview any applicable Home Owner Association (HOA) documents. Your real estate agent will help you through this process. If possible, do try to be there for the actual inspection process.

Normally, your Orlando mortgage professional will order the appraisal of your desired home as soon as the official purchase contract is received. Remember, you’ll have the same 10 day period here – or thereabouts – to get this done at the same time you’re getting the inspection done. So, it pays to make sure you get your mortgage broker whatever paperwork is needed as soon as you can. This will help expedite things and give you the time required to overcome any obstacles with regards to property condition or neighborhood values.

Note: As of May 1, 2009 – Federal law requires that conventional home loan appraisals are ordered through an Appraisal Management Company (AMC) who serves as a third party and handles the appraisal process. There are mixed feelings about AMCs, but they’re part of the conventional loan process and cannot be avoided. The main concern is that they can both increase the cost of and extend the appraisal process. The truth to either of these will play out as time moves on.

Most appraisers will ask for a check up front from the buyer. Normally, you’ll be looking at between $350 – $450, depending on the type of loan program.

When your Orlando mortgage broker has received the title report, escrow paperwork, completed appraisal, and has worked with you to take care of any existing buyer conditions (pay stubs, bank statements, misc.), your final loan package will be sent to the lender for final underwriting approval.

At this time your mortgage broker will need the the name and phone number of the home owner’s insurance (hazard insurance) company you’ve decided to use.

Take a little time to select the insurance provider you’re most comfortable with. Depending on the loan program you select, you might be provided with the option of including the insurance with your monthly mortgage payment, or you may choose to take care of these payments on your own. FHA and VA loans require that you pay your hazard insurance as part of your monthly mortgage payment, along with applicable property tax insurance payments.

Note: You will always handle the payment of any applicable HOA payments separately.

Final loan documents are signed during what’s known as the closing table. Basically, you’ll meet your mortgage broker at the title company and will go over all of the final loan documents pertaining to your home purchase.

Not all mortgage brokers will attend your closing with you. While it’s advisable and preferred, it’s not required. However, a good mortgage professional will want to be present and stand behind the rates, fees, and monthly payments that were originally quoted for you when you began your Orlando mortgage process.

The closing process should only take about an hour.

The lender will make sure they have all of their papers in order and all signatures match up. Sometimes there are minor conditions that need to be addressed, but we try to handle everything ahead of time so that the docs move through funding smoothly.

At this stage, the lender or bank sends the funds to the title company and the funding and recording process is completed. This can take between 1 – 4 days from the time final docs are signed at title.

There could possibly be a hold up at this stage if you’re dealing with a bank owned property (REO). This is because you may have to wait for the seller to approve and sign off on the final settlement statement. Most likely, this process will not provide any major time delay. The most comment delays are caused by the bank being backed up administratively and is perhaps out of state. This is the only case in which you may not receive the keys to your new home right at closing. But don’t worry – they’re on their way!

Other possible hold ups: I’ve seen HOA documents, prior liens, and all of the other mess associated with buying a foreclosure hold up files for several weeks. The important thing is that you have a good real estate agent in your corner fighting those issues for you.

Basically, don’t plan on moving in to a new home immediately after signing loan documents if it a foreclosure. Give yourself a little room for flexibility, but I’m sure the discounted price is worth a little wait.