What Steps Need To Be Taken To Secure A Loan?

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You’ll see some pictures in this video to help you remember later, but the first step in securing a loan is to complete a loan application.

To do so, you’ll need the following information.

  • Pay stubs for the past 2-3 months.
  • W-2 forms for the past 2 years.
  • Information on long-term debts.
  • Recent bank statements tax returns for the past 2 years.
  • Proof of any other income.
  • Address and description of the property you wish to buy.
  • A sales contract on the home you want to buy.

During the application process, the lender will order a report on your credit history and a professional appraisal of the property you want to purchase. The application process typically takes between 1-6 weeks.

We will be your trusted friend every step of the way to closing!  Call us if something doesn’t make sense … the new mortgage rules are confusing, but we can help!  Seaview Title … “Closings Made Easy!”

Do Creditors Have To Approve TRID Loans In 3 Days?

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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 you withdraw your loan application within that period they do not have to provide the Loan Estimate.

However, if the creditor does NOT supply the Loan Estimate in the required time approving and issuing the loan later under your original application terms will make them non-compliant with TRID Regulation Z.

At Seaview Title, we believe informed clients are happy clients!  “Closings Made Easy!”

Your Rights And Rules For Closing Disclosures

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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 must provide a corrected disclosure AND an additional 3-business-day waiting period until loan consummation.

Waiving the 3-day waiting period is only permitted in certain circumstances, and only when the waiting period would cause a bona fide personal financial emergency. Check out the video for more great info!

For more information about your rights under the law, please contact your loan officer and our staff of lawyers at Seaview Title Company, LLC.

Realtors — Are You Using Gmail, Yahoo, or AOL as Your Business Email?

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Are you using Gmail, Yahoo, or AOL as your business email?

If so, you should consider getting a private email domain (@yourcompanyname.com). Using a free email service (e.g. @gmail.com, @yahoo.com, @aol.com, etc.) puts you, and your clients at greater risk for a cyber-attack. Here’s why you should switch to a private email domain.

Increased Frequency of Cyber Attacks

Every day, news reports flood the internet warning of a new email scam or a new cyber-attack that has been unleashed on the title insurance industry. Knowing that free email services have very low security makes them an easy target for cybercriminals. Millions of dollars have been stolen as many title agents have fallen victim to these cyber-attacks.

Protection of NPPI

With the heightened focus on the protection of Non-public Personal Information (NPPI) brought about by the Consumer Financial Protection Bureau (CFPB), many lenders are beginning to tie the use of free email addresses and domains with an increased potential for cyber-attacks and email scams. There are many federal and state laws requiring you to protect NPPI and this is a significant step towards that requirement.

Professionalism

A private email domain will give your business a more professional brand. Appearances are important, especially today when lenders are taking a hard look at which third party venders they decide to do business with. Using a private email domain will make you look well established and ready to take on any closing.

While there are many reasons to move to a private email domain, these are three big reasons to make the switch ASAP. There are many reasonably priced private domain registration sites that can help you in achieving this important data security goal.

Also, if you’re transmitting documents or emails containing social security numbers, client information, or sensitive financial data, this NPI should be protected by using a secure email program.

At Seaview Title, we use SafeSend for all NPI we send to our clients.

How Do I Make A Home Ready To Sell?

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As we show you in this video, start several months before the property is made available. Look through the eyes of a buyer

  • What needs to be cleaned?
  • Repainted?
  • Repaired?
  • Or tossed?

Ask yourself – or a friend If you were buying this house what would you want to see?

The goal is to show a home that looks good makes the most of its assets like space and location and attracts as many buyers and as much demand as possible.

Allow yourself enough lead time – not just a day or two – to make the most of the sale. And get help from a real estate agent – early.

What Is The Debt-To-Income Ratio (DTI)?

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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 grocery bill is not.

To calculate your debt-to-income ratio add up your monthly debt payments and divide them by your GROSS monthly income. (Gross income is generally the amount of money you earn BEFORE taxes and other deductions.) The Federally-established debt-to-income target is a maximum of 43% for Qualified Mortgages.

If your ratio is higher there may be other loans available  – however, there may also be additional questions to establish your ability to repay, and the rates may be different than those available for Qualified Mortgages.

Studies suggest that a high debt-to-income ratio puts a homeowner at greater risk of challenges making monthly payments. So consider your situation and risks carefully before exceeding that suggested ratio.

At Seaview Title, we wish you happy shopping for your mortgage. Please call us if we can assist you in finding a good mortgage company you can trust.

What Should I Look Out For During The Final Walk-Through?

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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 problems discovered previously that you find uncorrected should be brought up prior to closing. It is the seller’s responsibility to fix them.

Calculating Your Cash To Close

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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 – Can Shop – no tolerance limit, BUT IF you select a provider from your lender’s list their actual cost should be no more than 10% greater than the estimate.
  • E – Recording Fees are also subject to 10% tolerance
  • F – Prepaids, G – Initial Escrow and H – Other, such as Owner’s Title may vary from the Loan Estimate without tolerance limits.

These estimates of closing costs plus loan details, Down Payment, Deposits Credits and Adjustments are used to calculate your estimated cash requirements when the loan finally closes. Consider the possible changes and tolerances when evaluating a loan decision.

At Seaview Title, we believe well-informed buyers and sellers make for happy customers!

What Do Lenders Have To Tell You About Your Real Estate Loan?

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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 estate loans First, the Loan Estimate, which covers the key features, costs and risks of a mortgage loan.

For an approved loan this must be returned to the consumer within 3 business days of loan application. If the loan goes forward, the Closing Disclosure form, covering key transaction costs, must be delivered at least 3 business days before loan consummation.

At Seaview Title, we believe in “Closings Made Easy!”