Lender verifies the buyer's employment, income, deposits, credit rating and debts. Upon receipt of all information and appraisal, loan officer submits application package for loan approval to the VA, FHA, investor or lender's loan committee, as appropriate. VA, FHA, and occasionally a conventional lender, may specify requirements which must be met before loan will be made, such as repairs. Ask your listing broker about this situation. When the loan is approved, a commitment is issued to the buyer.
Many contracts require loan commitment from the lender within a specified period of time.
After the buyer receives written loan approval, selling and listing brokers will coordinate a settlement date. Your listing broker will notify you to confirm the date, place, and time and will give you a checklist of everything you need to bring to settlement. Your listing broker will also let you know when you should notify utility companies to transfer accounts. The home seller now can make definite moving plans. Eliminate items you won't be moving.