A subordination agreement with Wells Fargo is a legal document that outlines the order of priority for different liens and mortgages on a property. In simpler terms, it establishes which lender has the right to payment first if the property is sold or foreclosed on.
If you`re a homeowner looking to borrow against your home`s equity, you`ll likely need to obtain a subordination agreement from Wells Fargo if you have an existing mortgage with them. This is because any new mortgage or lien on the property must be subordinated to the first mortgage (the one with Wells Fargo).
The process of obtaining a subordination agreement can be confusing, but it`s important to understand the basics. Here`s what you need to know:
1. Contact Wells Fargo: The first step is to contact Wells Fargo and request a subordination agreement. They`ll likely ask you to fill out an application and provide documentation, such as a copy of your current mortgage and proof of homeowners insurance.
2. Wait for approval: Once you`ve submitted your application, you`ll need to wait for Wells Fargo to approve the subordination agreement. This can take several weeks, so be patient. During this time, it`s important to keep communication open with your new lender to ensure that the loan process is moving forward.
3. Finalize the agreement: Once Wells Fargo approves the subordination agreement, you`ll need to sign it and have it notarized. Make sure you read the agreement carefully and understand the terms before signing.
4. Send the agreement to your new lender: After you`ve signed the subordination agreement, you`ll need to send it to your new lender for their records. They`ll likely ask for a copy of the agreement before closing on your new loan.
In summary, obtaining a subordination agreement with Wells Fargo is an important step if you`re looking to borrow against your home`s equity. By understanding the process and working closely with both lenders, you can ensure a smooth transition and protect your property rights.