FREQUENTLY ASKED QUESTIONS
Can’t find the answer you’re looking for? We have shared some of our most frequently asked questions to help you out. Please see below.
First of all, we recommend fill out your loan application completely. You may use our online forms to expedite the process. Also, please respond promptly to any requests for additional documentation especially if your rate is locked or if your loan is to close by a certain date.
The following are some recommendations to follow:
- Remember that we must run your credit at loan closing to show no new debts have been incurred
- Keep a paper trail of any large deposits to your bank accounts
- Maintain your current employment and number of hours worked- what we have used to qualify you for your new loan
- Remember that your employment will be checked on the day of loan closing and any change could result in your loan being delayed or denied
- Know that we want to work with you and make your mortgage happen as smoothly and painlessly as possible
- Open ANY new credit, for yourself or as a co-signer
- Close ANY open lines of credit (this could affect your credit score)
- Make any new major purchases (you could deplete your cash assets)
- Pay off all debt (every move you make with your money may have an impact on your loan qualification)
- Increase your existing loan balances
- Spend ANY of the funds you have said you will retain for down payment and reserves
- Allow your credit to be checked by any other creditor
- Make ANY large deposits to your asset accounts that cannot be traced
- Change jobs
Do not move money into or from your bank accounts without a paper trail. If you are receiving money from friends, family or other relatives, please prepare a gift letter and contact us.
Just do regular/daily expenditures. Do not make any major purchases until your loan is closed. Purchases cause your debts to increase and might have an adverse affect on your current application.
During this time, you may want to avoid causing any changes to your credit score, such as purchasing a new car or opening a new line of credit, as this could slow down the process.
Do not go out of town around your loan’s closing date. If you plan to be out of town, you may want to sign a Power of Attorney.
While your application is being processed and your documents are being reviewed, we’ll order an appraisal of your new home in order to check how much the property is actually worth and make sure that it checks out against the asking price. We’ll send you a copy of the report once it’s completed.
After the loan application, we’ll submit your loan to underwriting for final review and approval. We’ll look for any last minute impediments and make sure everything is ready for close.
Is the final inspection of a property being sold (performed by the buyer) to confirm that any contingencies specified in the purchase agreement such as repairs have been completed, fixture and non-fixture property is in place and confirm the electrical, mechanical, and plumbing systems are in working order.
It is a legal document that includes the guarantee the seller is the true owner of the property, has the right to sell the property and there are no claims against the property.
The deed, will legally transfer ownership of property from one person to another. It must be recorded on public records with property description and owner’s signature. A deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed.
Private mortgage insurance, also called PMI, is a type of mortgage insurance you might be required to pay for if you have a conventional loan. Like other kinds of mortgage insurance, PMI protects the lender—not you—if you stop making payments on your loan. This will cover borrowers with down payments of less than 20% of a purchase price.
Lender’s title insurance protects the lender of the money to purchase the property.
The insurance that protects the buyer of a property in case there are issues with the property not uncovered in a title search is called title insurance or owner’s policy. When purchasing a home or property, there are a number of things that could go wrong with the sale of the property, even long after the property has been purchased.
Also known as the “settlement sheet,” or “closing statement” it itemizes all closing costs. Must be given to the borrower at or before closing. Items that appear on the statement include real estate commissions, loan fees, points, and escrow amounts.
Closing costs are other fees for final property transfer, not included in the price of the property. Typical closing costs include charges for the mortgage loan such as origination fees, discount points, appraisal fee, survey, title insurance, legal fees, real estate professional fees, prepayment of taxes and insurance, and real estate transfer taxes. A common estimate of a Buyer’s closing costs is 2 to 4 percent of the purchase price of the home. A common estimate for Seller’s closing costs is 3 to 9 percent.
A Good Faith Estimate must be given to the borrower within three days after submission of a loan application. It is an estimate of all closing fees including pre-paid and escrow items as well as lender charges.
A collateral is an asset that a lender accepts as security for extending a loan. If the borrower defaults on her loan payments, the lender may seize the collateral and sell it to recoup some or all of his losses. Collateral can take the form of real estate or other kinds of assets, depending on what the loan is used for.
Is a person that signs a credit application with another person, agreeing to be equally responsible for the repayment of the loan.
Homestead credit is a property tax credit program, offered by some state governments, that provides reductions in property taxes to eligible households. You can request this credit if you meet some requirements as age, primary residence, among others.
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