It is the list of settlement charges that the lender is obliged to provide the borrower within three business days of receiving the loan application.
Yes. All lenders generally require that taxes be paid into escrow at closing. When HomeState Mortgage is providing financing for your home and your loan is under 80% loan to value, you do have the option to request a waiver of your escrows for taxes and insurance.
Because market conditions constantly change, lenders will typically accept an appraisal if it is 120 days old or less prior to your closing date. After 120 days, a lender will require a new appraisal to reflect current market value and property condition.
Home inspections are highly recommended but not required by mortgage lenders. The home inspector works directly for you as the buyer, providing a detailed report to inform you if there are any problems with the property. An appraisal is required by lenders to determine the accurate current market value of the property and to ensure that it meets all secondary market requirements.
Typically the answer is no, with the possible exception of a deposit that you made to secure the purchase of your home, but don’t intend to apply toward the purchase. Such a deposit refund would most likely occur with a no money down or low down payment loan.
If you are looking to buy a home, we can give you a prequalification letter based on your credit report and a review of your preliminary loan application. This prequalification letter is subject to review once we receive supporting documents such as income, assets and employment, and is not a guaranteed loan approval. A full preapproval, on the other hand, is a firm commitment letter issued by our underwriting department. This preapproval letter makes you a more viable buyer because it indicates that our underwriting department has approved your financing based upon a review of your income and assets documents (subject to an appraisal and a signed purchase & sale contract). Because a preapproval letter assures that have received financing approval, it will often induce a seller to accept your offer.
If you are refinancing your home, the average time frame is about 15 days. A home purchase time frame is tied to the closing date set by the seller and the buyer in your Purchase and Sales agreement. We will do our part to make sure your closing take place on time. HomeState Mortgage will be happy to expedite a fast closing for you if you are under a strict timeline.
Your credit score is based on your personal credit history, and can vary depending on how long your accounts have been active, balance in relation to credit limits on credit cards, your history of on-time payments, and any open collection or judgment accounts.
The Amount Financed is your mortgage amount MINUS the prepaid finance charges. Prepaid finance charges include items such as loan origination fee, commitment fees (points), interest adjustments, and initial mortgage insurance premiums (if applicable). The amount financed represents a net figure used to allow you to accurately assess the amount of credit actually given.
The pre-approval process is much more complete than pre-qualification. For pre-qualification, the loan officer asks you a few questions and provides you with a pre-qualification letter. Pre-approval includes all the steps of a full approval, except for the appraisal and title search. Pre-approval can put you in a better negotiating position, much like a cash buyer.
The Annual Percentage Rate, or APR, is the cost of your credit expressed in terms of an annual rate. Because you may be paying points and other closing costs, the APR can be used to provide a method for comparing the cost of credit for different loan programs.