What to Expect With Conditions During Mortgage Process

[BakerTheBaker]

So we’re barreling toward the end here, with a scheduled closing date of 04/30. We did our Bank Application, and received our first set of Conditions after two days – which we addressed immediately. We got a second round, and those are addressed as well. Our file currently says “No Conditions.” Is there any rhyme or reason to further Conditions and when they might appear? I want to be diligent, but checking three times a day might be creating more anxiety than it’s worth. And what do we get to indicate we’re done with Conditions? Or is that just the Final CTC?

[Nelsont]

It’s as if your file will pass through different departments. Not sure that’s what actually happens but, that’s how it appears. Every time a new hand touches your file they might find something.

Getting the keys to your house is what indicates you are done with closing as it is not likely but, possible to receive conditions up until closing. Once you receive the CTC you should be good to go though nothing is guaranteed.

[Alikay]

Agree with Nelsont up until you get your keys there might be conditions. I got an email whenever there was a new condition and my MC always emailed me. If you trust the people and the process maybe it helps with cutting down the obsessive checking of the webfile. I’m CTC final have been for 13 days. Because of everything that’s happening with COVID I got another condition about providing emails for HR so they can check again that our employment situation has not changed.

[dmesau]

I’ve addressed the same conditions like 3 times. My file says conditionally approved pending conditions. At least for me it takes a week for conditions to clear and others to post or status to change.

[TTrumble]

Hello BakerTheBaker,

First off, checking three times a day is definitely excessive and far more likely to bring about the Close to Closing Crazies than anything else.

The final Closing Disclosures is usually a very good sign that you are just about there. There’s just a couple of things left to do at that. The Verbal Verification of Employment (VVOE) is always the very last thing before the Clear to Close.

At this point it’s time to just relax and let the process work. There may be a minor hiccup yet, especially with the stay-at-home, shelter-in-place and other orders happening across the country, but those will actually be minimal if any. Everyone involved in the mortgage process is considered part of the Financial Services exception for “Essential Services”, so we are going to keep moving forward.

My guess is the biggest issue you are going to face now is getting the moving truck!

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

[2BLESSED]

@BakertheBaker praying for a fast closing for you! Even in these difficult times God is still in the blessing business.

[BakerTheBaker]

Thanks, Tim! As of now, I’m still working and part of an essential industry as is my co-buyer (food supply chain) so hopefully nothing changes in the near future. Our MC has really undermined by faith in communication, unfortunately, but I’ll do my best to keep checking to a minimum.

[Peapod0609]

You are ahead of schedule, if anything! Keep doing what you’re doing, but it looks like things are flowing well from my perspective. Getting conditions within 2 days is pretty quick, actually, as well as a 2nd round of conditions already.

You are on the right track, for sure! Just continue to stay on top of it, and you will easily close by that 4/30 date. You probably don’t need to check 3 times a day, but honestly, I checked that much every day when I was closing. It does add a bit of extra unnecessary anxiety, though. I think checking once early in the day and once later should be more than enough. You are pretty far along in the process for a closing date 5 weeks out, so try not to stress too much, you’re doing fine.

[FutureHomeownercrew]

Congrats on your closing date, so exciting!! This is good to know. I just got credit access approved and will be signing bank app but not in office because of pandemic.

I didnt know after credit access approval that a person may still have conditions. Hope it is smooth sailing for you. We got a new MC and they have been great.

Question, when did you need to find a quote for homeowners insurance?

[Nelsont]

You will very likely have conditions during the bank app phase. This is bank of America underwriting now performing the same review that naca underwriting just did during credit access. The difference is that naca had you take care of the things that the bank can potentially deny you on. Just look at it this way. Every new step requires a review and q&a.

You should get your insurance binder now. And not a quote. If you get a quote then you will get a condition to provide a binder. If you do it online go through the steps of obtaining a quote then at the end click the button that says purchase now. You will be given an option to pay it yourself or to have the bank pay. Click the option to have the bank pay. You will need to input bank of America’s texas office address. Then submit and print that out. That is what they want.

[FutureHomeownercrew]

Thanks @NelsonT do you know if there has to be specific wording or requirements with the homeowner insurance?

[Nelsont]

Not to my knowledge. Typical plan should be just fine. If you live in a county designated flood plane (basically the elevation is lower than surrounding areas to oversimplify) or you live in an area prone to natural disasters you will need additional coverage.

[Alikay]

I got my insurance when I was doing credit access. I did mine online and they asked for the bank contact, per my MC’s instructions, I gave his name and email.

[Alex]

I gave my MCs name and email to the insurance company as well as BofA Texas address. I didn’t have a name for the bank contact, is that okay ?

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