Frequently Asked Questions
The following are the most frequently ask
questions that are common during the loan process. If you have any
additional question please contact us.
ESCROW PAPERS
After we receive your initial documentation, Escrow is opened. Among
Escrow’s functions is to send out the preliminary information pertaining
to the proposed transaction. i.e., Loan Amount, Lender, etc. This
information is preliminary and will change as the transaction
progresses. It is important that the Escrow Company receives, in a
timely manner, the Statement of Information filled out completely.
MAKING YOUR MORTGAGE PAYMENT DURING THE LOAN PROCESS
Mortgage payments are normally due on the 1st of the month. If it is the
10th of the month and you have not made the mortgage payment, you have
three options:
-
Make the payment in person at your bank
or by Cashier’s Check.
-
Pay a late payment fee.
-
Bring the payment into Escrow at signing
of your loan documents.
If you send a payment, the Lender has to
post the payment, clear the check and then give Escrow an updated payoff
statement. This can result in unnecessary delays.
MORTGAGE LOAN PAYOFF
The amount shown on your current mortgage statement is not the payoff
amount. The payoff will have 30 days interest (in arrears) added plus
any reconveyance fees, recording fees, etc.
RATE LOCK
It is possible to lock the rate initially; however, if the rates go
down, we would like to take advantage of the lower rate for our clients.
If you signed an Agreement with your Loan Officer regarding the interest
rate, then the loan will be locked at that rate or better!
TIME
FRAMES
Turn around time frames vary depending on the market and demand.
Currently, with the interest rates the lowest since 1966, the industry
is overwhelmed. Plan on at least 30 days for your refinance. Normal
turnaround time frames are 24 to 48 hours for loan documentation – 24 to
48 hours for funding and 24 to 48 hours for recording. Also, remember
after you sign your loan documents, there is a “Three Day Right of
Rescission” period.
TRUTH AND LENDING DISCLOSURE STATEMENTS
Federal Regulations require the Lender to send these documents to you.
It is a function of “opening the file”. The file has not gone to
Underwriting; a Loan decision has not been made. If the interest rate is
not the rate you have discussed with your Loan Officer – do not be
alarmed – again, this is only preliminary information.
The APR shown on this form IS “NOT YOUR NOTE RATE” For a detailed
description – see APR under Tools in the Mortgage Loan Glossary.