Closing Changes Oct 2015 – Part 3
Lenders start the loan process by asking borrowers on loan app for specific info;
Names & Socials of all borrowers
Property value, address
Amount of loan
After this info is provided
The lender has 3 business days to use the information and generate a loan estimate
The borrowers then are required to start the underwriting process by giving the lender a signed intent to proceed
Lenders could gather documentation from a borrower and the borrower could pay for an appraisal before providing a good faith estimate
NOW ***** lenders can only charge for credit report
***** No info provided from a borrower can be verified until after the loan estimate has been created & borrower has singed an intent to proceed form.
The 3 day clock for lenders can RESTART MULTIPLE times until all info is there & the borrower has time to look at it
Means – SLOWER
BUT -****Borrowers won’t be put in the position of getting to a closing and being told they need more $$ before the end of the day to close.