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The Time-Line of a Home Purchase

You just got the keys to your new home and think “wow what just happened?” Better yet, what still needs to happen?

Let’s use this as our starting point and jump forward, then go backwards through the time-line of what occurred for those keys to change possession. And what still will be happening over the next little while.

  • The Buyer receives their Final Title policy – usually via regular mail
  • The Lender receives the Final Title Policy as paid for on the HUD statement
  • The Owner’s and Lender’s Title Policy is issued by the title company’s Title Insurance Provider – insuring the Lender and Buyer that the entire process has been completed properly
  • The Title Company inputs the recorded mortgage information into the Owner & Lender title policies
  • The recorded mortgage is returned to the Lender
  • The recorded Mortgage is returned to the title company
  • The signed Mortgage is sent to the county Office for recording
  • The Seller’s handed you the keys
  • Title Company handed the Seller’s a check or wire transfer receipt
  • Buyer is given their initial Owner’s Title Insurance Policy
  • Title Company “cut” checks and/or sent wire transfers to all parties listed on the HUD Closing statement
  • Lender Authorized Funding by giving the Title Company a Funding Number
  • Lender receives and reviews for accuracy the documents faxed to them by the title company – usually sent via fax
  • The Closing happens – documents are signed by the buyer and seller
  • The HUD statement is approved by the lender
  • The HUD statement is “put together” by the closing agent and sent to the Lender for review
  • Closing Agent reviews sellers outstanding Liens or mortgage(s), when taxes have or have not been paid, when taxes are due to be paid next, what commission split is to be paid to what realtors, confirms who is to be paid for buyers Homeowner’s Insurance and how much, reviews the Lenders closing instructions and what fee(s) are to be shown on the HUD statement and any other items specific to the property , buyer(s) or seller(s)
  • Closing Instructions for preparing the HUD statement and documents to be signed at closing are sent to the title company by the Lender
  • Closing Department at the Lender prepares the loan documents – per the specific parameters of the Final Approval by the Underwriting Department
  • Loan is “cleared to close” by the Underwriting Department
  • Final Approval is given by the underwriter after all items specific the borrower’s income, assets, budget and personal credit history are documented to be sufficient to qualify and meet the standards as set by the Lenders Guidelines, also reviewed is the Appraisal, title-work, insurance, and signed documents as required for the type of loan requested
  • Buyer’s Home-Owner’s Insurance policy is sent to the Lender to make sure coverage choices meet the standards as required
  • Appraiser submits the completed Appraisal to the Lender
  • Title-work, Closing Protection Letter and wiring instructions are submitted to the Lender
  • Appraiser comes out to the property and takes pictures, measurements and evaluates the house
  • Title Companies search is done at the county records office for any items filed against the house or current owners
  • Appraisal is ordered thru a third party management company as required by HVCC policy
  • Title-work is ordered – usually chosen by the seller or their realtor
  • Lender’s Underwriting Department issues a preliminary Approval of the borrower – pending satisfactory completion of title-work, appraisal and insurance coverage and any other stipulations
  • Loan Application, program disclosures, RESPA documents, state specific disclosures, income documentation, proof of identity, credit bureau, Automated Underwriting Findings, asset documentation, bank statements and executed purchase agreement are submitted to the Lender
  • Initial Appointment with Broker or Lender’s representative to sign all items required by Federal Law to be provided to you when real estate is involved and give copies of your personal documentation, and a copy of the signed purchase agreement to the representative
  • Buyer decides which Lender to “go through” and sets an appointment to meet with that Broker/Lender
  • Broker/Lender will pull and review your credit bureau and ask many questions about your sources of income and any assets you have in order to make a decision if you can qualify to purchase the home – usually this is done via a automated underwriting computer program
  • Buyers shop for a Lender to provide the financing
  • Buyer and Seller decide on an agreed amount, time-line for possession and details of the sale – usually this is done through and “supervised” by the realtor(s)
  • An offer is made to try and buy the property
  • You drove down the street, looked through the newspaper, heard from a friend or family member, met with a realtor and found a house you wanted to make yours

The home buying process can vary greatly depending on what state you live in, what type of loan, type of property and your personal scenario. Also this can vary a little if you choose to get pre-approved for your potential purchase. This is a fairly basic time-line, but does give you an understanding of general items involved in most Indianapolis Homes for sale transactions.