 Home Loans • Mortgage Refinance
FHA Loans • Condo Loans HOME LOAN FREQUENTLY ASKED QUESTIONS
1. How long does it take to obtain loan approval?
The average number of days from application to approval will vary from lender to lender, however 7-10 business days is typical. Depending on your credit history, down payment or equity in your home, and the loan program selected, some lenders may be able to approve your mortgage in less time.
2. How long will it take to close if I applied for my mortgage through a "pre-approval"
If you applied through a "pre-approval" program and were approved, some lenders can close within 3 weeks after a purchase contract has been signed. In most cases, 45-60 days from application to closing is typical. Each lender's timeframe will vary and the transaction itself may cause the timeframes to vary.
3. If I refinance my loan with my existing lender, will I have to pay all the closing costs again?
Typically, yes, as there is a cost to process any new loan application. This cost may include fees paid to third parties, such as the appraisal provider and the title and closing providers
4. Will the lender agree to include my closing costs in the loan amount?
Possibly - there are options that may provide this. Please call
(512)382-6062 x1101 or email here to learn more.
5. How quickly can a lender close on my home loan?
Many lenders can facilitate closing 2 to 3 weeks after you have agreed on a purchase contract for a home. If you need more time, you can take the time you need. However, keep in mind if you want to close after your rate lock expires, you will need to pay additional fees to protect your interest rate. Many lenders require 30-60 days from purchase contract and application to closing.
6. Can I close on a home without having to be at the closing table?
Many lenders are willing to accommodate what is termed a "mail away" closing. You may also appoint someone to act for you by using a Power of Attorney. In this scenario, you would actually assign someone to sign on your behalf. Each state has its own specific requirements, so please check with your closing agent for state specific requirements. If you select a "mail away," the lender will coordinate overnight delivery of the documents to ensure a timely closing. Please note this process may require some additional coordination time.
7. What is direct billing?
A direct billing program allows a relocation lender to pay all the
non-recurring closing costs on your behalf and, in turn, bill them directly to your employer. This makes the closing process easier and reduces the out-of-pocket expenses you are responsible for at the time of closing. Direct billing is only available in certain situations.
8. How much money will be required at closing?
You should consult with your individual lender and closing agent; however, the amount of money needed for cash to close is comprised of your down payment, closing costs, as well as the prepaid items for your initial taxes and insurance escrow accounts. A lender is required to provide you with a good faith estimate of settlement costs at the time of application. Also, typically within 24 hours prior to your closing, the closing agent will provide you with the final sum of money required for the closing.
9. Does the lender require title insurance for purchase transactions?
Yes, a Mortgagee's Title Insurance Policy will be required on purchase transactions.
10. What is a counter offer?
If we are unable to complete your loan with the terms identified in your application, you may receive a counter-offer that restructures those terms to allow your application to move forward.
11. What is a condo project approval and why is it necessary?
A condo project approval confirms the marketability and long-term stability of the condo project and is necessary in order to ensure that the transaction risk is minimized.
12. Why are you asking me for more information or something I already provided?
You may be asked to provide additional information as your application moves further along the process and is reviewed by a loan underwriter, or if the document that was submitted is no longer current.
13. What is a large deposit?
Any deposit to a bank or asset account that significantly increases the balance, but is outside of the usual pattern of paycheck or other
established income deposits. Fannie mae defines this as any deposit over $400 other than payroll.
14. What homeowner's insurance requirements will I need to meet at closing?
Most lenders require a one-year paid receipt for homeowner's insurance policy for at least the amount of the mortgage at the loan closing |
