Skip to main content

"Mortgage Anatomy 101" ... the Current Mortgage Process, Part 3"




"Mortgage Anatomy 101" ... 

the Current Mortgage Process, Part 3"

      In Part 1 of the post,  "Mortgage Anatomy 101" ... the Current Mortgage Process"  ... I detailed much of what happens in the initial portion of your mortgage process.  In Part 2, I dug a little deeper into the mortgage process and touched upon your mortgage file's submission into  Underwriting, the Underwriting itself, and then Loan Approval. 
      In this Part 3, the last article in the series, I will talk about the Closing of your home's financing.  Your Mortgage Closing is the culmination of all your hard work and effort over the last weeks.  It represents the successful completion of your Mortgage Process.   It represents the fulfillment of your dream.
       Once your Mortgage Lender has received the Underwriter's blessing to Close, your Loan Processor "directs" your mortgage file to your Lender's Closing Department.  All information contained within your file is re-confirmed .... the Loan Amount, Loan Payment, Loan Terms, as well as those  that will be participating in the Loan Closing.  Those are:  The  Title Company, Attorneys, you the Borrowers, your Mortgage Lender, Agents, and possibly  more.
       Next, the Mortgage Lender's "Closer" prepares the Mortgage Documents and sends the final monetary figures for your financing to the Title Company.  The Closer then arranges for the Mortgage Lender's funds (typically via wire) to be provided for the day of your Closing.  Note:  Until the Title Company Closer has all the figures from ALL parties, including the Seller's Attorney, the Final Numbers regarding your Closing are not compiled or known. 

       It's the Title Company's Closer that prepares the  Final Closing Statement,  known as the "HUD 1", or the "HUD".  Upon that being completed, I can inform you (the Borrower) of the Total Amount of Funds you need to bring to your Closing (if applicable).  In Illinois:  That amount MUST be wired to the Title Company's Bank (if over $50,000) or be presented in the form of a  Cashier's Check  (if less than $50,000).

       Note:  I will add ... that it IS possible to Close elsewhere other than a Title Company office, in some instances.  Ask me ... (your Mortgage Lender) ... if this is an option that can be exercised and accommodated within your financing scenario.  Purchase transactions can also close at the offices of the attorneys involved, and is typically the decision of the seller's attorney and the title company.
       Your big day has arrived!  The main focus of your Closing, is to sign the paperwork that will transfer ownership from the seller of the home to you  (the new property owner and Borrower)  ...  and to finalize your mortgage financing.   *  Please remember to bring your Driver's License (or other Identification) along with you to your Closing.
      
     The primary documents that you will be asked to sign are:
        *  The HUD-1 Settlement Statement:  Discussed above ... but this is an itemized listing of the charges and credits involved in the transaction, for both you, the Buyer, and the Seller.  They reflect the terms agreed upon in your Sales Contract and with the lender as per the  Good Faith Estimate.
     *  The Promissory Note:  As the name suggests, the Promissory Note is your signed promise/document to re-pay a specific amount of money lent to you by your Mortgage Lender upon the Subject Property, with specific re-payment terms.  
     *  Mortgage:   This legal document is recorded and protects the Lender by staking the First Claim to the Property in case of Default.  Upon full re-payment of the Mortgage Loan, the Lender "releases" its claim as the first Lien-Holder.
     *  Deed:  The Seller of the property will sign-over their ownership to you, the Borrower, at the time of Closing.  The title is held for you until the time of total re-payment. As the new Homeowner you should always retain a copy of the deed, as someday you will become the Seller.
     *  Statements & Declarations:   These documents verify that all information you say and represent is factual and true.  (That typically means you are attesting to the fact that this residence will be your primary residence.) 
     I ... (your Mortgage Lender) will provide you a packet with the necessary information needed to make your first and subsequent monthly mortgage payments.  Keep this valuable information handy, along with your other important documents, and in a safe place for future reference.  This will be helpful come tax time.
     The Title Company or attorneys will record the newly-signed Deed and Mortgage immediately after Closing.  The local taxing bodies will also informed of the exchange of property ownership at this time.
     After signing all the required documents is completed, the property keys, garage openers, etc. will be provided to you.  It's now official!  Congratulations!  You are new Home Owners!   Go out and celebrate a job well done.  You've earned it ...
     


     *  I hope that my breakdown of the anatomy of the current Mortgage Process has helped you better understand the steps needed to become a new Home Owner (or Refinance) today.  And that it removed some of the nervousness you might have felt about entering it.  
     Should you still have questions regarding home buying or Mortgage financing in New Lenox, Will or DuPage Counties, or elsewhere in the Chicagoland area  ... please do not hesitate to contact me.  I'll be happy to hear from you and answer your questions ...
     I can be conveniently found at any of the following: 
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281     Skype:  630.219.1316
You are Invited to Follow Me through
any of the Social Media found below: 


      
         

Comments

Popular posts from this blog

Property Addresses: Gettin' Down to the Nitty Gritty

Property Addresses:   Gettin' Down to the Nitty Gritty

Take just a second and read through the following statements ...


“The devil is in the details” 
... "in life, it is often the tiny details that end up 
being the most important"

"Get Down To The Nitty Gritty"

“Little details have special talents in 
creating big problems!” 

“Sweat the details”

"Success is the sum of details"

Details ...Details ... it's all about the details ...
     And I'll admit it, I'm a bit of a nerd about them.  My whole family is.  Details, the intricacies, the little things ... they matter to us.
When I was growing up, a typical conversation (and argument) between my brothers and myself at the dinner table or in the backyard centered around "details".  It didn't matter what the topic was, it was the minor differences ... the details about the topic ... that we argued about.  I'm sure we drove our parents crazy.  
Sports statistics and games ... minutiae rega…

Ready for Fall? It's Arriving Soon

Ready for Fall?  It's Arriving Soon

Friend ...

Maybe it's because football season has started. Maybe it's the kids being back in school. Or because the night air is cooler. But a sense of Fall has arrived here in Chicagoland ...

The Fall Season brings changes with it. Changes in temperatures. Changes to the clothing we wear. Our focus seems to shift with the coming of shorter days, falling leaves, and crisp air.

Fall can be the perfect time to do a multitude of things. You can prep your home for the upcoming winter weather ... or for Fall listing and sale. 

But whether you're moving on or staying put, Fall is a great time to declutter and organize your home inside and out ... and your finances too.

I've googled like crazy to find interesting articles filled with Fall info, ideas, tips, and photos. Articles that will help you usher the Fall Season in at your house. I hope you enjoy reading the articles offered below and that they inspire you to make any needed changes.

Rem…

Paper or Paperless billing? Which serves YOUR needs best?

Paper or Paperless billing?  Which serves YOUR needs best?


These days, companies are under pressure to go "green" and become more environmentally friendly.  As a result, an increasing number of businesses are offering their customers a paperless option with which to receive and pay their bills. 

There are obviously many positives to be found within these paperless services:


Trees are saved  Reduced postage costs  Less paper documentation to organize or save/storePossible rewards for switching to paperlessPayments can often be made/posted same-dayAutomated payments can be set-upMore
But I can tell you from my vantage point as a Chicagoland/IL/WI Mortgage Originator, there are also negatives to be found within paperless methods.  For some of my mortgage clients, the choice of going "paperless" just hasn't worked well.

 For some, an email or text reminder regarding payment of bills has not been enough. They NEED a paper billing to arrive in their mail. 

Their paper bil…