Process
The Loan Process
- Set up a meeting with your loan officer to fill out the loan application. After you provide the required documents, a credit report will be ordered by the loan officer.
- Your application is processed. The title work (assuring that your new home has a legal title) and appraisal (determining property value) for your new home are ordered.
- Once the title work and appraisal of your new property are completed, these documents are added to your application file. All of your information is then sent to underwriting. This is where your application is approved, denied, or additional information is requested.
- Once approved for your loan, your information is forwarded to the closing department. Documents and instructions for closing the sale of your new property are prepared and sent to the title company handling your closing.
- The closing. Final documents are signed, funds are disbursed and payments (as they spelled out in the terms of your mortgage loan) begin.
Mortgages
Types of Mortgages:
A mortgage on the borrower's principal residence, usually for the purpose of making home improvements or debt consolidation.
A mortgage set up as a line of credit, from which a borrower can draw, up to a maximum amount. Money can be drawn from the line by writing a check, using a credit card or other forms of withdrawing money.
The scheduled monthly mortgage payment consists of interest only and no part of the payment goes toward principal, so the loan balance will remain unchanged. The option to pay interest only only lasts for a specified time period, usually 5 to 10 years. This type of loan is flexible in that, borrowers have the option of paying more than just the interest only payment (paying toward principal).
A LIBOR mortgage is an adjustable rate mortgage on which the interest rate is tied to the London InterBank Offered Rate. This s the interest rate offered for U.S. dollar deposits by a group of London banks. There are different types of LIBORS depending on the length of maturity of the deposit made to the London banks.
(Veterans Administrations mortgage)- A mortgage available to both active and former servicemen and women. No down payment is required and the lender is insured against loss by the Veterans Administration.
A purchase money mortgage is one that is given to secure the loan which is used to buy the property. A first (senior) mortgage on the property has priority over any second (junior) mortgages.
A loan to an home owner, usually 55 or older, on which the balance rises over time and which is not repaid until the owner dies or sells the home.
