Recently, we discussed the fifth step in the home buying process: Processing and Underwriting. Once the clear-to-close (CTC) is issued, your loan moves into the sixth step: Closing. This is the final step in the process before you move into your new home.
What Happens at Closing
At closing, all the necessary paperwork is presented and signed by both the sellers and the buyers. At least three business days prior to closing, you will receive a Closing Disclosure (CD). The CD will detail all of your closing costs and factor in any down payments, credits or gift funds provided on the loan transaction.
When you close on your loan, the title of the property is transferred to the buyer, an escrow account is set up if applicable, funds are obtained by the buyer, and the security interest of the lender is recorded by the County or City Clerk. Should you need funds for closing, these must be in the form of a certified check.
After Your Loan Closes
You will make payments on your mortgage loan following an amortization schedule. An amortization schedule will show you the amount of principal versus interest you are paying each time you make a payment.
Once your loan has closed, your lender may transfer servicing of your loan to another lender or servicing company. You will be contacted both by your current lender and your new lender/servicer in the event that servicing is transferred. If you have any questions after your loan closes, you can reach out to your Loan Originator, or to your current loan servicer.
If you missed any of our 6 Step blogs, you can find them here:
Homeownership is a rewarding achievement. The home buying process may present challenges, but having qualified mortgage professionals by your side can make all the difference. If you have any questions about the home buying process, contact one of our licensed Mortgage Loan Originators. If you are ready to buy a home, click here to get started!
Recently, we discussed the first step in the home purchase process: getting pre-qualified. Getting pre-qualified allows you to enter the home buying process prepared, with a budget in mind. Once you’ve been pre-qualified, the second step in the home buying process is to choose your mortgage loan type.
Fixed-Rate vs. Adjustable-Rate
Mortgage loans are split into two types: fixed-rate and adjustable-rate. A fixed-rate mortgage has the same interest rate for the length of the mortgage term. Fixed-rate mortgages are usually available in either 15- or 30-year terms. The 30-year fixed rate mortgage is the most common type of mortgage.
An adjustable-rate mortgage has an interest rate that is usually fixed for a set period of time, and then periodically adjusted according to a specific benchmark. Many factors determine how the interest rate changes, including market conditions, financial index, etc.
Whether you should choose a fixed-rate or adjustable-rate mortgage depends on your personal financial situation, how long you plan to live in your home, how quickly you plan on paying your mortgage back, and many other factors. Your loan originator can help you determine which type will work best for you.
Once you have chosen the type of rate that is best for you, you can choose a loan program. Some of the most common loan programs are:
For a more comprehensive list of loans and their requirements, contact your mortgage loan originator.
According to Gladys Marcelin, NFM Lending Georgia Branch Manager, the most important factors to take into consideration when choosing a loan program are your credit, your income stability, and your available assets. Your loan originator can work with you to choose the loan program that best suits your needs and financial situation.
In addition to working with a knowledgeable professional, educating yourself on the mortgage process is important, especially as a first-time homebuyer. Gladys recommends attending a homebuyers’ seminar, especially if you are a first-time homebuyer, to learn more about home loans and buying a home.
“Buying a home can be a tedious process, but it can also be rewarding and is a great accomplishment,” says Gladys.
If you have any questions about loan programs or the home buying process, contact us. If you are ready to start the home buying process, click here!