Posted on: 05th Jul, 2006 12:16 pm
I'm trying to close on my house. The buyer has a letter of commitment. The lawyer says the need more paper work. I thought letter of commitment was enough what else do they need before approving the loan?
Hi Kerrylyn,
Welcome to MortgageFit Forums.
Real estate transfers and purchases involve a lot of paperwork to be completed and without that it is difficult to get approved for a loan.
A lender will always want to be assured of the clarity in the title of a house before granting a loan against that.
The law may have some variations based on the state where the property is located but some of the documents that are required are as follows -
Purchase Agreement - This is an important document in any real estate transaction and states the rights and obligations of each party.
Seller's Property Disclosure Statement - A seller must deliver the buyer a disclosure statement on the material facts concerning the property.
Commitment of Title Insurance has to be provided too. You need to consult the real estate lawyer and know all the papers that are required as per state law. It may take some time but this process will help to avoid any difficulty in future.
God bless you.
For MortgageFit,
Samantha
Welcome to MortgageFit Forums.
Real estate transfers and purchases involve a lot of paperwork to be completed and without that it is difficult to get approved for a loan.
A lender will always want to be assured of the clarity in the title of a house before granting a loan against that.
The law may have some variations based on the state where the property is located but some of the documents that are required are as follows -
Purchase Agreement - This is an important document in any real estate transaction and states the rights and obligations of each party.
Seller's Property Disclosure Statement - A seller must deliver the buyer a disclosure statement on the material facts concerning the property.
Commitment of Title Insurance has to be provided too. You need to consult the real estate lawyer and know all the papers that are required as per state law. It may take some time but this process will help to avoid any difficulty in future.
God bless you.
For MortgageFit,
Samantha
Just would like to add that you are likely required to show the homeowner’s insurance to verify that there is sufficient coverage on the property. This insurance covers up any damages that may affect the home’s value.
