Frequently Asked Questions
What Makes Up Closing Costs?
What you’ll see in this video is, there may be closing costs customary or unique to a certain locality but closing costs are usually made up of the following:
Attorney's or escrow fees (Yours and your lender's if applicable)
Property taxes (...
What Can I Expect To Happen On Closing Day?
While this video simplifies things to help you remember: you'll present your paid homeowner's insurance policy or a binder and receipt showing that the premium has been paid. The closing agent will then list the money you owe the seller remainder of down payment, pr...
How Can The FHA Assist Me In Buying A Home?
Remember these points from the video:the FHA works to make homeownership a possibility for more Americans. With the FHA, you don't need perfect credit or a high-paying job to qualify for a loan. The FHA also makes loans more accessible by requiring smaller down paym...
What Types Of Closing Costs Are Associated With FHA-Insured Loans?
While this video simplifies things to help you remember, except for the addition of an FHA mortgage insurance premium, FHA closing costs are similar to those of a conventional loan.
As of 2013, the FHA requires a single, upfront mortgage insurance premium equal t...
What Should I Look Out For During The Final Walk-Through?
Well, as this story shows, this will likely be the first opportunity to examine the house without furniture giving you a clear view of everything.
Check the walls and ceilings carefully as well as any work the seller agreed to do in response to the inspection.
Any prob...
What Responsibilities Do I Have During The Lending Process?
To ensure you won't fall victim to loan fraud, as you’ll see in this video, be sure to follow all of these steps as you apply for a loan:
Be sure to read and understand everything before you sign.
Refuse to sign any blank documents....
What Are The Steps Involved In The FHA Loan Process?
The video puts this in more visual terms, but with the exception of a few additional forms the FHA loan application process is similar to that of a conventional loan.
With new automation measures FHA loans may be originated more quickly than before. And, if you don...
How Do I Choose The Right Lender For Me?
There are some great tips in this video. Choose your lender carefully. Look for financial stability and a reputation for customer satisfaction.
Be sure to choose a company that gives helpful advice and that makes you feel comfortable.
A lender that has the authority...
Closing Costs Explained Visually
Purchasing a home is exciting. Once escrow begins, the excitement can change to frustration, particularly if you are not ready for the closing costs that quickly accumulate.
Closing costs simply refer to the fees associated with various thing...
Title Insurance Explained Visually
What is title insurance and why should any buyer get it when purchasing a home (single family, townhouse, condo, apartment, or whatever format your home purchase takes)? Doesn’t the attorney or settlement company handling the closing see to it tha...
Understanding Your Loan: Cash And Transaction Summaries
Page 3 of your Closing Disclosure will compare cash requirements from your Loan Estimate to your actual final charges. If “Did this change?” is “YES” notes for changed sections should be provided.
...
Understanding Your Loan: Closing Cost Details
Page 2 of your Closing Disclosure details specific closing costs.
Section A includes: Origination charges collected by the lender Origination fees paid to brokers, loan officers or other parties and Discount Points ...
Your Rights And Rules For Closing Disclosures
The Closing Disclosure documents the actual terms of your loan transaction. You should receive it no later than 3 business days before consummation. It must be in writing - paper or digital.
If the loan terms or costs change prior to consummation, your lender mus...
Understanding Loan Estimate Comparisons
Page 3 of your Loan Estimate includes measures to help you compare loans.
“In X Years” shows the total amount you will have paid in that time, and the dollar amount applied to your loan principal. The ratio between total paid and principal reduced may...
Calculating Your Cash To Close
Page 2 of the Loan Estimate provides the current ESTIMATED cash to close. Some costs will stay the same between estimate and closing. Some will change.
A - Origination Charges - should match.
B - Can’t Shop - 10% Tolerance
C -...
Understanding Your Loan Estimate: Other Costs
Real estate transactions require taxes, certain pre-payments, and escrow funding.
Recording fees are charged by government agencies for keeping legal ownership records, while “transfer taxes” may be impo...
Understanding Your Loan Estimate: Services You CAN Shop For
These costs are paid to outside parties and YOU are free to shop and compare providers for a variety of services. These might include pest inspection, or a survey to verify property lines or a range of Title-related services.
Title services might inclu...
Understanding Your Loan Estimate: Services You Cannot Shop For
These costs are paid to outside parties, not the lender, but you don’t get to choose them. They may include:
appraisal, which puts a value on your property on the lender’s behalf
a credit report on you
fees to assess flo...
Understanding Your Loan Estimate: Page 2, Loan Costs
Closing costs are fees paid when the title of the property is transferred to the buyer making them the legal owner.
Origination Charges are fees collected by the lender for the loan process. They may including fees for handling the loan application and “Ori...
Understanding Your Loan Estimate: Terms, Payments and Closing Costs
The first page of your Loan Disclosure shows the Loan Terms Projected Payments and Costs at Closing.
The Loan Amount, of course is the total you are borrowing. But the Interest Rate alone doesn’t represent all of your borrowing costs. The APR figure on Page...
Can My Settlement Charges Change?
Yes, if circumstances change, such as:
a natural disaster damages the property or affects closing costs
the title insurer providing the estimate goes out of business during underwriting
new information on you or the transaction affe...
Can Creditors Revise TRID Loan Estimates?
Creditors are generally bound by the initial Loan Estimate. They are permitted to provide a revised Loan Estimate only under certain changed circumstances. These include circumstances that:
a) increase settlement charges beyond the legal tolerance limits
b) af...
What’s Refunded If My Loan Is Higher Than My Estimate?
If the amount you pay at closing exceeds the amounts disclosed on the Loan Estimate - beyond tolerance limits for each category - the creditor must REFUND the excess to you no later than 60 calendar days after loan consummation.
For charges subject to a 10% cumul...
Could My Loan Costs Exceed The Loan Estimate?
Yes, within defined limits.
Service charges for which YOU shop and select a provider may change; the creditor is NOT responsible for providers who are NOT on their written list.
In addition, prepaid interest, property insurance premiums and escrow or reserve d...
What Will The TRID Loan Estimate Tell Me?
The Loan Estimate documents the essential facts and terms of an approved real estate loan. It includes:
loan terms
projected payments and loan costs
cash and costs at closing time
the services for which you CAN and CANNOT...
How Long Must Creditors Keep Real Estate Loan Records?
Under the TRID rule, creditors must retain Escrow Cancellation and Partial Payment Policy disclosures for two years; Loan Estimate records for three years after loan consummation and Closing Disclosures for FIVE years.
If a creditor sells or transfers their inter...
What Is A ‘Business Day’ For Real Estate Loan Disclosures?
“Business day” is defined slightly differently for Loan Estimates and Closing Disclosures.
For Loan Estimates, each day on which a creditor’s offices are open to the public count as a business day. Loan estimates must be delivered or placed in t...
Do Creditors Have To Approve TRID Loans In 3 Days?
If your loan is approved, on the terms you requested the creditor is required to provide a Loan Estimate within 3 business days.
If they determine that your application will not or cannot be approved they do not have to provide a Loan Estimate.
Likewise, if yo...
Can Creditors Collect Information Beyond The 6 Required Pieces?
In addition to the required pieces:
Name
Income
Social Security Number
Property Address
Estimated Property Value
Mortgage Amount Sought
a creditor may collect whatever additional informa...
What 6 Pieces of Information Make A TRID Loan Application?
Submitting these 6 pieces of information:
Name
Income
Social Security Number
Property Address
Estimated Value of Property
Mortgage Loan Amount sought
constitutes a valid loan application...
What Disclosures Are Used For Loans Not Covered By TRID?
Creditors must continue to use the Good Faith Estimate, Truth-In-Lending Disclosure and the HUD-1 form for reverse mortgages, HELOCs, mobile home or other non-attached dwelling loans and others NOT covered by TRID.
Housing assistance loans for low- and moderate-...
What Kinds Of Loans Do TRID Disclosures Cover?
TRID rules apply to MOST consumer credit transactions secured by real property. These include mortgages, refinancing, construction-only loans closed-end home-equity loans, and loans secured by vacant land or by 25 or more acres.
The rule does NOT apply to Home ...
What Do Lenders Have To Tell You About Your Real Estate Loan?
Federal “disclosure” forms define the information that creditor businesses MUST provide to consumers applying for real estate loans.
As of Oct 1, 2015 lenders must provide TWO New “TRID” disclosure forms. for the most common kinds of real ...
How Should I Prepare For Internet Showing?
Today, your first “showing” will be on the Internet - you're watching this on the Internet, right?
Your price, listing description and PHOTOS determine whether someone will visit in person. Consider professional staging advice or help.
Pr...
How Should I Prepare The Outside For An Open House?
Professional “staging” may include the exterior, but if you’re doing it all yourself, try the five things outlined in this video.
1 - Landscape & lawn.
That’s the first impression; make it a good one.
Mow, prun...
What Are VA Home Loans?
What Are VA Loans?
As the video says, the name is misleading - they’re not loans FROM the VA.
The VA - short for “US Department of Veterans Affairs” - is the Federal military veteran benefit system.
The VA admi...
What Are The Major Types Of VA Loans?
What Are The Major Types Of VA Loans?
Major Veterans Affairs loan programs described in this video include:
1) Purchase Loans.
These help eligible parties buy a home at competitive interest rates with little to no down payment a...
What Is A Certificate of Eligibility, or COE?
What Is A Certificate of Eligibility, or COE?
The COE is the key document that verifies to lenders that someone is eligible for a VA-backed loan.
Servicemembers, Veterans and National Guard and Reserve members may apply online or through their lender; most lenders...
What Is The Debt-To-Income Ratio (DTI)?
Measuring your existing debts against your existing income is one part of a lender’s required assessment of your ability to repay a loan.
Like the video says: debts are existing financial commitments; a car payment is a debt a gro...
What Is A Rate Lock?
Mortgage rates change constantly through an unpredictable combination of government policies and economic conditions. This video explains the common term 'rate lock.'
A “Rate Lock” is a guarantee that a lender will honor a
What Is A Qualified Mortgage?
As this video explains, Federal laws put into effect in 2014 and supervised by the Consumer Financial Protection Bureau define lending practices and loan terms for a new category called “Qualified Mortgages.”
They provide stable lo...
What Does Ability To Repay Mean?
What are the “Ability to repay” rules about?
In a nutshell, as this video shows, new laws require lenders to make a good-faith assessment of a borrower’s capacity to pay back their loan over time.
It’s a longer-term view that goes...
How Should I Prepare The Inside For An Open House?
For many homes and markets, professional help from someone in “staging” makes good financial sense. Like this video say, check your staging options first.
If you are doing it yourself, here are 5 key tips.
One - Depersonalize.
When Do I Get My Loan Closing Disclosure?
If an eligible loan proceeds from Estimate to closing, creditors must provide a Closing Disclosure form documenting the actual transaction terms and costs THREE business days before consummation. It must be in writing, whether paper or digital, and disclose ONLY the...
Understanding Your Loan: Closing Disclosure Page 1
The first page of your Closing Disclosure documents:
The Loan Amount - the total you will actually borrow
The Interest Rate - which does NOT include the fees factored into the APR on Page 5
If this loan has a penalty for pre-payme...
Understanding Your Loan: Additional Information Can Be Important
Page 4 of your Closing Disclosure is important. It is NOT just standardized form information that is identical for every loan.
Review these terms:
Assumption: can this loan be transferred to another person if you sell or transfer the property?
...
Which Square Footage Figure Should I Use?
Home size is one of the key figures used in comparisons.
But you may have different measurements to choose from, as you'll learn in this video, including builder, appraiser, tax records and possibly owner records.
Which one is right, and which one is be...
6 Selling Mistakes
If you’re selling, don’t do these things - take some notes from the video!
1. Don’t Sell Before The House Is Ready.
If it doesn’t present well, it won’t sell well.
2. Don’t Over-Improve
People ...
What Is An Appraisal?
Every house is unique; appraisers are trained and licensed for expertise in putting a value on properties.
Appraisers don’t work for the buyer or the seller; their primary mission is actually to protect the lender who’s risking money against the hom...
What Does The Closing Process Involve When I Sell?
As this video explains, a signed sales contract doesn’t mean your house is sold. There are still financial, contractual and legal steps for both sides.
The buyer has to get financing to meet the contract terms - which includes credit checks.
The property is ...
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