Your Mortgage Questions Answered Part 2

Mortgage and Lending with Guaranteed Rate NMLS ID: 21441

There are so many different types of mortgages out there — how do I know which one I should choose?
You’re right, there are a lot of choices. Each type of loan has different benefits and advantages, so it’s important to discuss your financial goals with me when we sit down to review your needs.

It is my goal and my duty to fully educate you on the options available to you and to ensure you fully understand the type of home financing that you choose. We’ll consider your current financial situation, your short- and long-term financial goals and what’s going on in your life when we discuss loan scenarios. This may be the biggest purchase you make in your lifetime and I want to be sure you are fully satisfied with the decision you make and the guidance I provide.
Tell Me About The Application and Processing of My Loan    Our loan process page gives you a lot of details on how your loan actually gets processed. Check there for more in-depth information about what happens to your loan application after it is submitted.


Do I need homeowner’s insurance?
You have to show proof of homeowners or (hazard insurance) at closing, so you must have insurance in place. Start shopping around early in the process to get the best deal. An experienced agent can give you some idea of how much insurance will be for different types of homes, which may influence where you choose to look for your new home or what type of home you want to buy.

I’m a first-time homebuyer. What are the special incentives for me?
We participate in several affordable mortgage programs which are designed to encourage homeownership across the country and to make buying a first home a low-stress process. Let’s talk about the programs available in our area and any federal programs you may qualify for.

What happens after I’ve applied for my loan?
I’m proud to say we have some of the fastest turn times in the industry. Once your application has been completed and submitted to the processors and underwriters, it is carefully reviewed and all your documentation is verified. We may need to ask you for more information, but that is not unusual. The sooner you can get that information back to us, the faster your application will be processed. Once your loan is approved, a closing date is set up and I will review what happens and what you’ll need to do to finalize the transaction. Then you’ll be ready to move into your new home!

For more details on the loan process, visit the Your Loan Process page.                  
What are closing costs?
On the day you actually buy your new home, in addition to your down payment, the prepaid property tax and homeowners insurance premiums, you’ll need cash for various fees associated with the purchase. These expenses are known as closing costs and are paid by both buyers and sellers.

Other closing costs may be necessary and should be considered when evaluating loan offers. We will discuss them in advance so there are no surprises at closing. These may include, but are not limited to:
• Attorney’s fee
• Property Taxes
• Loan Origination Fee
• Recording Fee
• Interest
• First premium of mortgage Insurance (if applicable)
• Title Insurance
• First payment to escrow account for future real estate taxes and insurance
• Paid receipt for homeowners insurance (and fire and flood insurance if applicable)
• Any documentation preparation fees
What actually happens at closing?
We hold a meeting with all parties involved: you, the seller, the seller’s agent, your real estate agent, a closing agent and me. The closing agent will have a stack of papers for you and the seller to sign. Take your time, look at each page and ask any questions you may have. Your agent will be able to answer most of your questions. This is a big step involving a lot of money, so you need to be sure you understand what you’re signing! You’ll need to provide proof of your homeowners insurance, while the seller will show proof of warranties and any inspections they paid for. The closing agent will go over the money you owe to the seller and the money the seller owes you, such as unpaid taxes.

After all the paperwork is signed, you’ll get the deed to your new home, stating you are the rightful owner, and your house keys. Congratulations, you are a home owner!

What will I receive at closing?

•Settlement statement, HUD-1 form
•Truth-in-Lending statement
•Mortgage note
•Mortgage or deed of trust
•Binding sales contract
•Keys to your new home

I want to stop paying mortgage insurance. Can refinancing help with this?
It’s possible. If you have 20% equity in your home, either because your home has appreciated in value or because you’ve been paying down your principal, we may be able to help you eliminate this additional cost. Call me today to learn more!


Comments (1)

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Rich:  Great post offering lots of very valuable information for those seeking mortgage financing.  LOVE that you try to fully educate your clients.  The education is so valuable, once they actually enter the process ...


Feb 19, 2013 01:45 AM