After going through the process of finding the home of your dreams in Bethel Park, Pennsylvania, you will be waiting for the day when your loan is approved. When that day comes, you and your family can start packing and preparing for your move, but what happens after you have been approved for a loan? Your loan officer will set up an appointment for closing on your house.
Closing is the end of the process of buying a house, and when the meeting is over, you will be a proud homeowner. It is when you will meet with your lending institution to review and sign numerous documents. The purpose of each document should be explained to you before you sign them. You will also need to bring a check to cover the closing costs and the agreed upon down payment. This exact amount will be available to you a few days before closing. You will need to bring a certified check to make this payment. You will also need to provide information regarding your homeowner’s insurance policy and proof of payment if you have not already done so. Expect closing to last at least an hour.
Documents you can expect to see at closing include a Truth-in-Lending Statement, the mortgage note, the mortgage or deed of trust, and other miscellaneous documentation. It is important to double check each of these documents before signing.
● Truth-in-Lending Statement: This document will show you the interest rate, annual percentage rate, the amount you have financed, and the total cost of the loan.
● Mortgage note: When you sign this document you are borrowing the money and promising that you will pay it back.
● Mortgage or deed of trust: Signing this document puts a lien on your house as security for the actual loan.
● Miscellaneous documentation: These documents could include a monthly payment letter (breaks down your payment into principal, interest, taxes, insurance, etc.), itemization of the amount financed (summarizes the finance costs), and other specific documentation required by your lender, the State, and/or Federal law.
Come to the meeting prepared to sign several documents. Come with a smile on your face. Come prepared to accept the keys to your new home when the meeting is over.
If you are already a homeowner in Bethel Park, then getting the phone call saying your loan has been approved indicates that you have applied for a refinance loan or a home equity loan. As an existing homeowner, you can benefit from these two types of loans because the money made available through these loans can be used for vacations, remodeling, tuition costs, unexpected medical bills, or even a new car.
● Refinance loan: Refinancing your existing mortgage can decrease your monthly payments if your refinance loan is at a lower interest rate than your initial mortgage or if you change the term of your mortgage. You will go through the same process with the same paperwork as you would when applying for a new mortgage.
● Home equity loan: If you decide to use the equity you have earned in your home to get a home equity loan, you can receive this money either as a lump sum or as a line of credit. You will pay interest only on the money you actually borrow. Home equity loans usually have low interest rates and a ten to fifteen year term.
Whether you are in need of a new mortgage, a refinance loan, or a home equity loan in Bethel Park, Pennsylvania, our loan officers will be glad to help you with your financial lending needs. Contact our office today to set up an appointment.
