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 deposits may change without legal tolerance limits.

Charges for recording services, and 3rd-party services ON the creditor list, grouped together may not exceed the Loan Estimate total for the same charges by more than 10%.

Transfer taxes, fees paid to the creditor, mortgage broker or an affiliate of either and fees paid to a 3rd party for services the creditor does NOT permit you to shop are ZERO tolerance and must match the Loan Estimate.

Seaview Title … “Closings Made Easy!”

What Factors Affect Mortgage Payments?

 

Well, as this story shows, the amount of the down payment, the amount of the mortgage loan, and the interest rate, along with the length of the repayment term, and payment schedule all will affect the size of your mortgage payment.

Your loan officer can assist you in determining what mortgage payment you can afford based on these factors.

At Seaview Title, we believe an informed client is a happy client!

Call upon us anytime you have questions!

How Can I Find Out Information About My Credit History?

 

Watch this video and take a few notes! There are three major credit reporting companies:

  • Equifax – www.equifax.com 1-800-685-1111
  • Experian – www.experian.com 1-888-397-3742
  • Trans Union – www.transunion.com 1-800-916-8800

Obtaining your credit history is as easy as calling and requesting one. Once you receive the report, it’s important to verify its accuracy.

At Seaview Title, we make closings easy!

What Is Equity?

 

Equity is the value YOU own in property such as a house. It’s the difference between what’s OWED and what the property is WORTH in the current market.

The example this video shows – you have a house worth $300,000 today and you owe the bank $200,000.  Your equity would be $100,000.

If the house is valued at $500,000 in five years, and you still owe $150,000 your equity will be $350,000.

Equity grows if the property value goes up or if the amount owed goes down.  The key thing to remember, simple as it sounds, is that you “own” increases in value. The bank’s loan doesn’t go up if the home’s value goes up.

Equity in a home can be used as collateral for loans but a house is not a piggy bank. Home equity can become a key financial asset over time; treat it wisely.

Seaview Title … smooth sailing all the way home!

What Happens After I’ve Applied For My Loan?

 

Once you’ve supplied the 6 required pieces of information and included any other information the lender deemed necessary, you’ll receive a Loan Estimate within 3 business days.

Once all the information has been verified IF the loan is approved the lender will provide a Closing Disclosure to you three business days before loan consummation.

They’ll usually set a date for loan consummation – which may also be at your closing meeting.

Closing is basically transferring ownership of the property; consummation is committing to the loan itself.

Once both are completed, you should be planning your move-in.

Check out our video for more great information! Seaview Title … “Closings Made Easy!”

What Are The Advantages Of 15- And 30-Year Fixed-Rate Mortgages?

 

This video will explain some of the advantages of the two basic mortgages available in today’s market.

With A 30-Year Term: In the first 23 years of the loan more interest is paid off than principal meaning larger tax deductions. As inflation and costs of living increase mortgage payments become a smaller part of overall expenses.

With A 15-year Term: Loan is usually made at a lower interest rate. Equity is built faster because early payments pay more principal. And the loan is paid off earlier.

Compare payments, principal and interest totals to make a decision.

If you have questions, we can help!  Seaview Title Company, LLC.

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 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!”

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-income consumers are partially exempt from TRID disclosures, and have specific rules.

Creditors are not required to provide Loan Estimate and Closing Disclosure forms and related booklets and statements for these loans.

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

Can My Settlement Charges Change?

 

Seaview Title wants you to know that your settlement charges may change, 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 affecting settlement is discovered.

If any of these events change 3rd-party charges beyond the 10% tolerance limit creditors may issue a revised Loan Estimate.

If a creditor issues a Loan Estimate they are presumed to have collected all 6 pieces of required information. They may not claim a change in circumstances by receiving one of these pieces of information AFTER issuing a Loan Estimate.

Keep in mind, that other special circumstances may arise in which you are required to hire legal counsel to address some legal issue pertaining to your credit, or for other reasons which may hold up your closing. These services are outside original estimates, and can increase closing-related charges, as well.