After receiving commitment letter from bank what else is left? UPDATED with another question...

We were just notified by our mortgage person to expect our commitment letter in the next 48 hours. Our lawyer has ordered a new survey because there wasn't an existing one to be found - so that is being worked on. Title search was ordered 10 days ago and I think is either still in process or came up clean because we have not heard of any issues. What else is there to happen before we can schedule closing?

ETA: OK our lawyer just told me the title search was all clear except for an open permit for an above ground pool, but the pool was removed years ago. Seller's counsel was made aware and we were told seller is taking care of it. Is this a hard thing to close out since the pool is no longer there?

Message edited 8/1/2013 3:36:13 PM.

After receiving commitment letter from bank what else is left?

The commitment often has conditions that have to be met - things like updated paycheck info, etc. (I can't remember what else). The title and survey have to be reviewed to make sure there aren't any issues - if there are, those have to be taken care of.

Re: After receiving commitment letter from bank what else is left? UPDATED with another question...

The bank has to "clear you to close," -- so you have to satisfy all conditions of the commitment (e.g., obtain homeowner's insurance). Has the appraisal happened? That is often a condition of the commitment (and with an FHA loan, it has to come in for value but if there are compliance issues, that might delay closing a bit). Also, the bank attorney will need to review the title report and give the ok to close... many banks wouldn't care about an open permit for an above-ground pool, so it may not even present a problem from a lending standpoint (but shouldn't be hard to clear up that issue on title).

So your lender should be able to give you an idea of how long it will take for the underwriter to "clear the file" -- assuming all conditions have been met and you have everything that is needed to the bank.

Once the bank clears the file, it's just a matter of scheduling.

After receiving commitment letter from bank what else is left? UPDATED with another question...

Yes, you have to meet their conditions in order to clear you to close, like updated bank statements, pay stubs, tax returns, etc. And be prepared to have to re-send things a million times. I kept a big folder with every single document paper-clipped with a fax cover sheet whenever I would fax something over so it was easy to find. I also kept a separate email folder for anything that was emailed, all correspondence was kept there just in case.

BE ORGANIZED.

Once you have provided all documentation and satisfied the banks requirements, you will be cleared to close, lock in the rate and then schedule closing. The length of time depends on how quickly you send things and they are reviewed and accepted by the bank. Once we were cleared to close, we closed in 3 days to avoid another month of mortgage interest.

Re: After receiving commitment letter from bank what else is left? UPDATED with another question...

the title company might want to go back and check that the pool is gone

it's shouldn't be a big deal