Please note: in our last installment of this series, we covered questions 1-5 in our top ten FAQ list, discussing loan options, costs, and lending requirements. If you have not done so already, please read that piece first!
We all have different approaches when it comes to decision making. If you’re a planner like me, you probably want to know as much as you possibly can about something before you jump in. With that in mind, we’ve compiled the top questions you’ll want answered before applying for your mortgage. In this piece, we'll cover timing considerations, processing questions, and more. Without further ado, here are questions 6-10!
Loan closing times vary and depend on number of factors. Closing dates may be delayed if there are missing documents or other underwriting delays; on the other hand, a loan may close sooner than expected if all requests and requirements are attended to right away. Speak with your mortgage banker to get an estimate of when your loan will close.
After documents are submitted to apply for a loan, the loan is then processed and underwritten (wondering what an underwriter does? Click here). Depending on which lender you choose, where these important steps in the loan process occur may vary: some lenders outsource processing and underwriting to satellite offices, which can present hurdles in communication and efficiency. At Apex, all of our loans are processed and underwritten in-house, and our mortgage bankers are in close communication with these professionals throughout the process.
An attorney puts together the contract for closing beforehand, so it is normal for homebuyers to attend closing without one. However, If you feel more comfortable having an attorney present, discuss this with your mortgage banker to ensure the attorney receives the date, time, and location of closing.
Generally speaking, it is a good idea to lock in an interest rate at some point in the loan process, although you will want to consult with a mortgage banker as to when. The mortgage market is constantly changing, and even small changes in rate can have a huge monetary impact over the life of your loan. At Apex, we have a unique Auto-Lock service that allows our customers to target a specific rate from a vast selection of offerings on the market, and then lock it in when it becomes available. You should also bear in mind that when you lock in a rate, you may not be able to take advantage of a drop in rate should it occur.
As a borrower, you are entitled to review your Closing Disclosure prior to closing. Your mortgage banker will make arrangements with you to provide the disclosure 3 business days prior to closing for your review. This will give you an opportunity to review loan terms, interest rate, and the costs of the loan.
If you’re still in the planning phase of your home purchase or mortgage refinance, we hope these 10 questions will help you in your journey. Ultimately, your mortgage banker will be the best resource to make sure all of the specific concerns you might have about your mortgage are addressed. If you’re not at that stage yet, we encourage you check out our Guide to Home Financing, which details everything you'll want to know about the mortgage process!
Topics: Appraisal, Mortgage Tips, GFE, Closing, Mortgage Application, Closing Costs, Buying a Home, Mortgage FAQs, Top 10 Mortgage FAQs, Picking a mortgage loan, fixed rate or adjustable, Loan Estimate