Real Estate Transactions

Real Estate Purchase Transactions usually involve the Realtor, Real Estate Attorney and the Mortgage Professional.  The Realtor is involved throughout the transaction.  The "listing" Realtor will solicit business from potential sellers and market their property in the Multiple Listing Service (MLS).  The "selling" Realtor introduces the property to potential buyers and presents the offer to the seller. 

Once the contract to Purchase has been signed, the selling Realtor will assist the buyer in obtaining a mortgage and will assist in complying with the mortgage conditions to close the loan.  The Listing Realtor will assist the seller in all the areas needed to be satisfied prior to closing, such as the Certificate of Occupancy and anything else needed to close the loan.

A Real Estate Attorney is an attorney who spends most of his time representing a person who either wants to Purchase or Sell Real Estate.  The attorney is responsible to insure that the buyers get "clear" title  to the property.  The attorney will obtain the Title  Search and review the documents that the Mortgage Company will send.  The attorney will record the Deed  and Mortgage, obtain the Title Insurance  and discharge all liens on the property.

The "selling" Realtor (or buyers agent) will help the buyer find a mortgage loan officer and help satisfy any conditions required on the mortgage commitment .  This is where we begin.  The Sales Contract becomes invalid when dated over 4 months.

The Sales Contract must be provided to the mortgage company with original  signatures from all parties.  This is also known as a "fully executed contract".

THE APPLICATION PROCESS

The loan is originated (written by) a Loan Officer and is placed in processing.  The Processor will send out all the needed Verification Forms, order the Appraisal  and Credit  Reports and package the loan in order for the underwriter to review.  The underwriter will determine whether or not the loan will be approved.  If the loan is approved, the Lender will issue a commitment  and the applicant will sign and accept the terms of the commitment.  Title  work is ordered and the loan is placed with the closing department.  The closing department will coordinate with the Title Company, Pest Company, Attorney, Surveyors and anyone who needs to be spoken to regarding this loan until closing.  When all the needed information is obtained, a closing date can be set.

*Note:  A commitment is issued by an Underwriter when the Income, Credit, Bank Assets and Appraisal  has been reviewed and determined to meet the underwriting guidelines of the selected program.  If the loan is submitted to underwriting without an appraisal, the loan can only be “pre-approved”.  Once the appraisal has been reviewed, the pre-approval will turn into a commitment.

A commitment is a written instrument stating the Bank/Lender will make the loan (subject to any conditions).  A condition is any item an underwriter wants to clarify or review prior to closing the loan.  A commitment can only be issued if there is a property address and an appraisal on that property.

Dan is the published author of the Mortgage Loan Officer Training Manual.  You may order one by visiting www.mortgagetrainingmanual.com

Licensed Mortgage Banker - New Jersey Department of Banking and Insurance; Licensed by the Pennsylvania Department of Banking; Virginia Licensed Mortgage Lender