assessment—a process called a Reconsideration of Value (ROV).
If the appraisal results in pre-sale repairs being necessary, the loan officer will notify the agents. At that point, perhaps your agent will negotiate having the seller do the repairs for the house in order for it to appraise at the sales price. Or, possibly, the price of the home could be adjusted to take into account the repairs you will have to pay for, or money can be set side in an escrow account contributed by the seller to compensate you for the "cost to cure". If not the contract can be renegotiated or cancelled.
The appraisal is the final step of the processing phase.
UNDERWRITING: LOAN CONDITIONS
Mortgage underwriters make sure the loan package is correct and complete. The amount of time to underwrite has decreased because of automation. There’s less searching for paperwork or missing pages with modern systems. With today’s data storage options and access lenders increasingly have direct channels which allow them to quickly get banking, income, and tax information. Borrowers must submit all documentation requested by the lender’s underwriting department. Meeting these conditions is essential to move the loan toward closing. The underwriter must verify the accuracy of all information provided in the loan application and confirm that the borrower has the financial ability to repay the loan.
CLOSING: CLEAR TO CLOSE
Once you meet all of the conditions, the underwriter will issue a “clear to close.” That means you are ready to finalize the deal.
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