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61. WHAT HAPPENS AFTER I HAVE APPLIED FOR A LOAN?
It usually takes a lender between 1-6 weeks to complete the
evaluation of your application. It's 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 process 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 MAKE UP CLOSING COSTS?
There may be closing costs customary or unique to a certain
locality, but closing costs 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 lender's administrative costs)
- Recording fees
- Survey fee
- First premium of mortgage insurance (if applicable)
- Title insurance (yours and your 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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