Approval
and Closing Questions |
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| What
happens at the loan closing? |
| Will
I need to have an attorney represent me at closing?
|
| Can
I get advanced copies of the documents I will be
signing at closing? |
| Who
will be at the closing? |
| I
won't be able to attend the closing. What other
options are there? |
| Can
I make my monthly payments with an automated debit
from my checking account? |
| If
I apply, where will the closing take place?
|
|
| What
happens at the loan closing? |
|
The closing will take place at the
office of a title company or attorney in your area
who will act as our agent. If you are purchasing
a new home, the seller may also be at the closing
to transfer ownership to you, but in some states,
these two events actually happen separately.
During the closing you will be reviewing and signing
several loan papers. The closing agent or attorney
conducting the closing should be able to answer
any questions you have or you can feel free to contact
your Loan Officer if you prefer.
Just to make sure there are no surprises at closing,
your Loan Officer will contact you a few days before
closing to review your final fees, loan amount,
first payment date, etc.
The most important documents you will be signing
at the closing include:
HUD-1 Settlement Statement
This document provides an itemized listing of
the final fees charged in connection with your
loan. If your loan is a purchase, the settlement
statement will also include a listing of any fees
related to the transaction between you and the
seller. If this loan will be a refinance, the
settlement statement will show the pay off amounts
of any mortgages that will be paid in full with
your new loan. Most items on the statement are
numbered according to a standardized system used
by all lenders. These numbers will correspond
to the numbers listed on the Good Faith Estimate
that will be provided in your application kit.
This document is also commonly known as the closing
statement and both the buyer and seller must sign
this document.
Truth-in-Lending Statement (TIL)
This document provides full written disclosure
of the terms and conditions of a mortgage, including
the annual percentage rate (APR) and other fees.
It is exactly the same as the TIL that you received
immediately after your initial application, except
it has been updated to reflect the final rate
and fee information. Federal law requires that
all lenders provide you with this document at
closing.
Note
This is the document you sign to agree to repay
your mortgage. The note will provide you with
all of the details of your loan including the
interest rate and length of time to repay the
loan. It also explains the penalties that you
may incur if you fall behind in making your payments.
Mortgage / Deed of Trust
This document pledges a property to the lender
as security for repayment of a debt. Essentially
this means that you will give your property up
to the lender in the event that you cannot make
the mortgage payments. The Mortgage restates the
basic information contained in the note, as well
as details the responsibilities of the borrower.
In some states, the document is called a Deed
of Trust instead of a Mortgage.
If your loan is a refinance, Federal Law requires
that you have three days to decide positively
that you want a new mortgage after you sign the
documents. This means that the loan funds won't
be disbursed until three business days have passed.
The closing agent will provide more details at
the closing.
|
|
| Will
I need to have an attorney represent me at closing?
|
|
| In some areas of the country it is
very customary, and sometimes required by law, to
have an attorney represent you at the closing. In
other areas, attorneys are not as common at a real
estate closing. Please contact the closing agent
if you have questions about attorney representation.
By all means, we recommend that you have an attorney
at the closing if it would make you more comfortable.
If your attorney has any questions about your new
mortgage, please refer them to your Loan Officer.
We'd be happy to provide any information necessary. |
|
| Can
I get advanced copies of the documents I will be
signing at closing? |
|
| The most important documents you will
sign at closing are the note and mortgage, sometimes
called the deed of trust. Unless there are special
circumstances, these documents are usually prepared
one to two days before your closing. Others documents
are prepared by the closing agent the day before
or the day of your closing. If you would like copies
of the completed documents to be sent to you after
they are prepared, please contact your Loan Officer. |
|
| Who
will be at the closing? |
|
| The closing agent acts as our agent
and will represent us at the closing. However, your
personal Loan Officer will contact you prior to
closing to talk about your final documents and to
provide a final breakdown of your closing fees.
If you have any questions that the closing agent
can't answer during the closing, ask them to contact
your Loan Officer by phone and we'll get you the
answers you need - before the closing is over! |
|
| I
won't be able to attend the closing. What other
options are there? |
|
| If you won't be able to attend the
loan closing, contact your Loan Officer to discuss
other options. If someone you trust is able to attend
on your behalf, you can execute a Power of Attorney
so that this person can sign documents on your behalf.
In other cases, we're able to mail you the documents
in advance so that you can sign them and forward
them to the closing agent. We're sure to have a
solution that will work in your circumstances. |
|
| Can
I make my monthly payments with an automated debit
from my checking account? |
|
| Automated monthly payments are available.
At the loan closing an automated payment application
will be provided. Simply return it at your earliest
convenience to enroll in the automated payment program. |
|
| If
I apply, where will the closing take place? |
|
We use a nationwide network of closing
agents and attorneys to conduct our loan closings.
We'll schedule your closing to take place in a location
that is located near your home for your convenience.
We'll deliver our loan documents and wire transfer
your loan funds to the closing agent or attorney
prior to closing so that they'll have plenty of
time to prepare for your closing. |
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