Now that you have discovered the 5 C’s of credit, due to the previous two Palm State Mortgage Company Blogs, we know you feel more confident about seeking a loan for the largest and most important
purchase of your life: A Home.
Suddenly, a feeling of overwhelming dread comes over you. In spite of the fact that you have a good credit history and a solid job. You have heard harrowing stories of the treacherous mountain of paperwork you will have to climb. You have doubtless heard of sheer cliffs and bottomless sinkholes of paperwork designed to discourage your pursuit of a loan for your home.
First of all, Palm State Mortgage does not deny that the loan process requires a good deal of paperwork, but we also think the paperwork has gotten an undeserved bad rap over the years. That’s the first myth.
The second sad myth is that the paperwork is designed to force you to fail in your search for a loan. No! This is not true. We must stress that the paperwork has been carefully developed for your protection, as well as the lender’s protection.
Fortunately, also, some of the paperwork has been streamlined, clarified and put into effect as recently as in October of this year.
We speak of course, of the famous new Know Before You Owe Papers. “In October 2015, the Know Before You Owe mortgage rules went into effect, replacing four disclosure forms with two new ones to provide greater transparency and make the mortgage process easier.”
You would not face any mountain, even a paper one, without a guide, and good maps. Think of Palm State Mortgage Company as your guide, and climbing the mountain of paperwork will become a simple hike.
Consider this article as a sort of map, to show you document “destinations,” for you to accomplish, step by step.
So, today we begin a two-part journey to conquer the fear of loan paperwork through understanding and familiarity with the forms you will see.
We will divide the journey into two stages:
Before the Closing, and At the Closing, which compares roughly to your ascent and descent of the mountain.
Home Mortgage Forms You’ll See Before Your Closing:
1. Buyer Representative Agreement: This legal, formal paper basically verifies that you are engaging a real estate agent who will help you buy a home.
2. Uniform Residential Loan Application: Here is where the work begins. In this paper you will detail your finances. You only need to be prepared to provide the facts behind your monthly income. This will include:
A. Financial Information: income, combined household expenses, assets and liabilities,
B. Personal Information: You will be giving your lender, your social security number and marital status.
In short, this form is packed with details that will allow your lender to assess your “ability to pay your mortgage.” You can check out the appearance of this form at this reliable online resource.
3. The Purchase Agreement: Before you see this home mortgage form, your offer for the home puchase is accepted by the seller. Basically the purchase agreement lists the details of the deal:
A. names of the buyers and sellers,
B. total purchase price,
C. commission payable to the real estate agent,
D A requested closing date.
This meticulous infomation will get you the financing from the lender for your home mortgage.
4. The Loan Estimate: Three business days after you have submitted your loan application, your lender grants you this home mortgage form, which specifies the loan you discussed. With this form you will learn all the terms and costs, including costs due at your closing.
Don’t worry; Palm State will explore all the options and help you find the lender that best suits your financial situation. Take a look at an example of a Loan-estimate Document at this convenient online source.
Contrary to the nightmares you might imagine, there are no quagmires or life-sucking pitfalls in the mortgage process. They are myths.
With Palm State Mortgage Company guiding you, the mountain of paperwork seems like a walk in the park.
We are here to help you negotiate your way up the mountain of paperwork, and place your flag on the American Dream at the summit. Find the map to your closing paperwork in next week’s Palm State Mortgage Blog.
