Intent to Proceed: A Comprehensive Guide to Your Mortgage Journey
Introduction
Getting a mortgage can feel like putting together a complex puzzle, but understanding each piece makes the process much smoother. One crucial piece is the Intent to Proceed - a step that signals your readiness to move forward with a specific lender after reviewing their initial loan offer.
Intent to Proceed: A formal notification from a mortgage borrower to a lender indicating they wish to move forward with a loan application after reviewing the Loan Estimate. The borrower can communicate their intent through various methods, including verbal confirmation, email, or signing a form, which then allows the lender to begin processing the loan application and charging related fees.
The Intent to Proceed Timeline
The process starts when you receive your Loan Estimate from a lender. You'll have 10 business days to review this document, which outlines your potential loan terms, monthly payments, and closing costs. During this time, you can compare offers from different lenders and decide which option works best for you. Once you've made your choice, you'll need to communicate your intent to move forward.
Methods of Communicating Intent
You have several options for telling your lender you want to proceed:
Pick up the phone and give verbal confirmation
Send an email stating your decision
Sign and return a formal intent form
Use the lender's digital platform to confirm electronically
What Happens After You Submit Intent
Once you've communicated your intent, things start moving quickly. Your lender will begin processing your application and may start collecting fees for services like appraisals and credit reports. You'll need to:
Gather required financial documents
Complete any outstanding application sections
Respond to requests for additional information
Schedule necessary inspections and appraisals
Common Questions and Misconceptions
Is Intent to Proceed binding?
No - you're not locked into working with a particular lender just because you've indicated intent to proceed. You can still change your mind or switch lenders if you find a better option.
What if you don't proceed?
If you choose not to move forward, the lender cannot charge you any fees except for the credit report cost. The application simply becomes inactive after the 10-day review period ends.
Important Considerations
Before giving your Intent to Proceed, consider these factors:
Current interest rates and whether you should lock your rate
How the offered terms compare to other lenders
Total costs including closing fees and monthly payments
Your timeline for completing the home purchase
Related Mortgage Concepts
Understanding these related terms will help you navigate the process:
Loan Estimate: The detailed breakdown of your potential loan terms
Rate Lock: An agreement freezing your interest rate for a specific period
Application Fees: Costs associated with processing your loan
Closing Disclosure: The final document detailing your actual loan terms
Tips for Success
Make the most of your mortgage application by:
Reading every page of your Loan Estimate
Writing down questions as they come up
Keeping copies of all communications with your lender
Organizing your financial documents ahead of time
Conclusion
Your Intent to Proceed marks an exciting step toward homeownership. Take time to review your options carefully, ask questions, and prepare your documentation. Remember that this decision starts the official processing of your loan application.
Contact Bellhaven Real Estate for expert guidance through every step of the mortgage process, including your Intent to Proceed. Our experienced agents will help you make informed decisions with confidence.