Now that you made it through house hunting, negotiating, and the loan process, you’re in the final stretch, closing. This is a very exciting time for both you and the sellers, since this is when the ownership of the home will be transferred. To ensure you are prepared for the closing process, here is what to expect.
1. The Walkthrough: After the sellers have moved out and before the actual closing occurs, you will need to do a final walkthrough of the property to confirm that the condition of the home is as it should be according to the sales contract. Some real estate professionals say you should allow 30 minutes or longer for a walkthrough, while others say you should walkthrough the home 24 to 48 hours before closing to allow time to handle any issues that may arise.
2. Closing Table: After you complete the walkthrough of the property, you will have to sit down with your attorney and possibly other various people including the seller, and your real estate agent at what is known as the “closing table”. Everyone will come together at a predetermined location to sign several legal documents in order to close on the purchase of the home. You will be required to review and sign the purchase agreement, a promissory note for the loan, mortgage documents, title documents, the settlement statement, and the truth in lending statement. The sellers will also have to sign the settlement statement, and the deed to the home. This whole process may take about an hour to complete.
3. What To Bring:
Buyers
- Each buyer will need a government issued photo ID, such as a driver’s license.
- A certified check or a cashiers check to pay for your share of the closing costs. Your lender will also provide a check with the remaining balance
that is due on the home.
- Proof of payment for your homeowners insurance and your flood insurance policy (if you have one) just in case
your lender wants to review them.
- Any other outstanding documents or paperwork you have not provided.
Sellers
- A government issued photo ID, such as a driver’s license.
- Certified or cashiers check made payable to the title or closing company, if these costs aren’t being ded
ucted from the sales price.
- Copies of all the keys to the house
- Garage door openers
- Codes to the alarm or keyless entry system
4. The Keys: After all the paper work has been signed, and everything is in order, you will then be given the keys to the home. The home is now officially yours!
The underwriter is one of the most important people in the mortgage approval process. Without the approval of an underwriter, no lender will fund or close on a loan. It is the job of the underwriter to ensure a borrower can repay the loan they are applying for and to determine that the sales price is supported by the appraisal value before granting lending approval.
The approval of a mortgage loan is based on several things: income, credit history, debt ratios, and savings. A borrower must be able to prove a stable income and job history needed to repay the loan. They also must have a credit history that reflects a stable record of repaying obligations and a balanced debt to income ratio. Additionally, a borrowers monthly debt must fall within acceptable limits determined by the loan product’s guidelines. Lastly the borrower must show that they have enough money saved for their down payment and closing costs. It is also smart to have a few months of mortgage payments saved away in case of an emergency. The underwriter will evaluate all of this information and sometimes ask for more information or explanations from a borrower. So if you want to speed up the process of getting approved for a loan, the best thing to do is to respond with prompt and complete information.
A property’s appraisal value is also reviewed by the underwriter to ensure it supports the amount of the loan you are requesting. A good underwriter will also take into consideration the location of the property and how it may be affected by natural disasters, such as floods.
An underwriter does his or her best to calculate the risk involved when lending to a borrower. If an underwriter did not follow all guidelines and made a poor lending decision and the loan defaults, meaning a borrower stops making payments on their mortgage, it can result in a hefty cost to the lender. As you can see, the role of an underwriter is no easy job, as they must make important decisions based on their own judgements and experiences.
Supply and demand, economic and physical infrastructure, and local income levels all play an important role in the cost differences among regions. Rising food, gas, and health-care costs have some Americans wondering where their dollar can go further. So we decided to do some research and discovered what the cheapest and most expensive cities were on the East Coast.
Most Expensive
1. Manhattan, NY- Manhattan, New Yorks most expensive town, is the only area in the country where living costs are more than double the U.S. average. They say if you can make it here, you can make it anywhere.
2. Stamford, CT- This small town has one of the highest concentrations of millionaire households in the country. Here, the housing costs are more than double the national average and living expenses run anywhere between 8% to 27% above average according to the 2014 research by the Council for Community and Economic Research also known as C2ER.
3. Washington, D.C.- The cost of living here is 40.1% above average, according to the C2ER. Local housing expenses at 2.5 times the U.S. average can be taxing, but other goods and services such as utilities, transportation, and health care have near normal prices.
4. Boston, MA- While this city is definitely not cheap, Boston offers the most affordable housing expenses and home values among these expensive cities. Unfortunately, the savings stop there.
Least Expensive
1. Memphis, TN- Memphis is the biggest city in Tennessee, yet it doesn’t have the big city prices. In Memphis, you can buy a house for less than $100,000, according to the C2ER. This is a price tag difficult to match in a similar sized city.
2. Springfield, IL- The cost of living in the Springfield metro area is about 14% below the U.S. average according to C2ER. However, the median household income is higher in comparison to the other least expensive cities.
3. Youngstown, OH- This town has struggled to find its place in a modern economy. Home values are 73% less than the national median, and household incomes are 54% below the norm for the U.S.
4. Augusta, GA- For one week every April, Augusta becomes one of the priciest places in Georgia due to the Masters Golf Tournament. The other 51 weeks, Augusta is remarkably affordable, with the cost of living 12.9% below the U.S. average.
If you are relocating for a job or for a change of scenery, looking into the cost of living would be a great detail to consider. Certain factors, such as job type, salary, and what the area has to offer are also aspects to think about when making a location decision.
By Day: Here at Norcom, Robert works as a Marketing Coordinator. He stays busy by coming up with new ideas in order to help promote and strengthen the Norcom Mortgage and Insurance brand. He also helps manage tradeshows, direct mailings, email marketing campaigns, social media presentations, and ordering promotional items for the retail, wholesale, and correspondent departments. He works closely with all the departments at Norcom and enjoys all the people he works with, especially the marketing team. He has been working at Norcom for almost a year now, but plans on working here for many more years to come and aspires to continue to grow with the company.
By Night: After a busy day at work, Robert goes straight to the gym, heads back home for dinner, and then he is off to bed. On Thursday’s, however, it’s guy’s night for Robert and he gets together with his close guy friends for some pizza or grinders. Together they hang out, watch sports, and discuss their weekend plans. In Roberts’s free time, he enjoys hanging out with friends and family, going to the gym, and playing in various sports leagues. Robert also likes to attend various college and professional sporting events for fun. Something that most people don’t know about Robert is that he has a twin brother named Justin.
Mortgage insurance is an insurance policy that a borrower must obtain if their down payment on a home is less than 20 percent of the appraised value or sales price. This insurance policy compensates lenders or investors for losses due to the default of a mortgage loan. A default happens when the borrower stops paying on a mortgage. The borrower also benefits from mortgage insurance as well. Acquiring mortgage insurance allows borrowers to purchase a home before having the full 20 percent of a down payment.
Types of Mortgage Insurance: There are typically two types of mortgage insurance. The first is mortgage insurance bought from the government, for those with FHA or VA loans. The second is for conventional loans, which are bought from a private division, also known as private mortgage insurance or PMI. Typically, the type of mortgage insurance required depends on the type of mortgage a borrower receives.
Cost of Mortgage Insurance: With FHA loans, there is an up-front mortgage insurance premium and annual premium that is collected monthly. VA loans have an up-front funding fee, but no annual or monthly premiums. With Conventional Mortgage insurance, the rates vary. Usually, the lower your down payment and/or the lower your credit score, the higher the premiums. For specific details about the cost of your mortgage insurance, contact us a 855-Norcom-1.
Avoiding Mortgage Insurance: Putting down 20 percent or more when purchasing a home, will allow you to avoid paying mortgage insurance on a conventional loan.
Cancelling Mortgage Insurance: Once you’ve built up a certain amount of equity in your home, typically 20 percent, you can request to cancel your mortgage insurance policy. The lender will also automatically cancel the insurance policy once you’ve reached 22 percent in equity, based on the original appraisal value of the home.
