Frequently
Asked Questions
• Getting
Started
• Finding
Your Home
• You've
Found It
• General
Financing -- Questions:The Basics
• First
Steps
• Finding
The Right Loan For You
• Closing
• How
Can HUD And The FHA help Me Become a Homeowner
• Mortgage
Insurance
CLOSING
61. WHAT HAPPENS AFTER I'VE APPLIED FOR MY LOAN?
It usually takes a lender between 1-4 weeks to complete the
evaluation of your application. Its not unusual for the lender
to ask for more information once the application has been
submitted. The sooner you can provide the information, the
faster your application will be processed. Once all the information
has been verified the lender will call you to let you know
the outcome of your application. If the loan is approved,
a closing date is set up and the lender will review the closing
with you. And after closing, you'll be able to move into
your new home.
62. WHAT SHOULD I LOOK OUT FOR DURING THE FINAL WALK-THROUGH?
This will likely be the first opportunity to examine the house
without furniture, giving you a clear view of everything. Check
the walls and ceilings carefully, as well as any work the seller
agreed to do in response to the inspection. Any problems discovered
previously that you find uncorrected should be brought up prior
to closing. It is the seller's responsibility to fix them.
63. WHAT MAKES UP CLOSING COST?
There may be closing cost customary or unique to a certain
locality, but closing cost are usually made up of the following:
• Attorney's or escrow fees
(Yours and your lender's if applicable)
• Property taxes (to cover tax period to date)
• Interest (paid from date of closing to 30 days before first
monthly payment)
• Loan Origination fee (covers lenders administrative cost)
• Recording fees
• Survey fee
• First premium of mortgage Insurance (if applicable)
• Title Insurance (yours and lender's)
• Loan discount points
• First payment to escrow account for future real estate taxes
and insurance
• Paid receipt for homeowner's insurance policy (and fire and
flood insurance if applicable)
• Any documentation preparation fees
64. WHAT CAN I EXPECT TO HAPPEN ON CLOSING DAY?
You'll present your paid homeowner's insurance policy or
a binder and receipt showing that the premium has been
paid.
The closing agent will then list the money you
owe the seller (remainder of down payment, prepaid taxes,
etc.) and then the
money the seller owes you (unpaid taxes and prepaid
rent, if applicable). The seller will provide proofs of
any inspection,
warranties, etc.
Once you're sure you understand all the documentation,
you'll sign the mortgage, agreeing that if you
don't make payments
the lender is entitled to sell your property and
apply the sale price against the amount you owe
plus expenses. You'll
also sign a mortgage note, promising to repay the
loan. The seller will give you the title to the
house in the form of
a signed deed.
You'll pay the lender's agent all closing costs
and, in turn,he or she will provide you with a
settlement statement of all
the items for which you have paid. The deed and
mortgage will then be recorded in the state Registry
of Deeds, and you will
be a homeowner.
65. WHAT DO I GET AT CLOSING?
• Settlement Statement, HUD-1
Form (itemizes services provided and the fees charged; it
is filled out by
the closing agent and must be given to you at or before closing)
• Truth-in-Lending Statement
• Mortgage Note
• Mortgage or Deed of Trust
• Binding Sales Contract (prepared by the seller; your lawyer
should review it)
• Keys to your new home
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