[vc_row][vc_column offset=”vc_hidden-xs”][vc_empty_space height=”110px”][vc_empty_space height=”10px”][/vc_column][/vc_row][vc_row][vc_column offset=”vc_hidden-lg vc_hidden-md vc_hidden-sm”][vc_empty_space height=”30px”][vc_empty_space height=”15px”][/vc_column][/vc_row][vc_row][vc_column width=”1/6″][/vc_column][vc_column width=”2/3″ offset=”vc_hidden-xs”][vc_column_text]
Frequently Asked Questions On
Real Estate (Mortgage)
[/vc_column_text][vc_empty_space height=”10px”][vc_tta_accordion style=”flat” color=”black” c_align=”center” active_section=””][vc_tta_section title=”How is interest calculated on a mortgage loan?” tab_id=”1494343449537-02c5c7b9-89158dea-ec21″][vc_column_text]Most mortgages originated today calculate interest in arrears, unlike consumer loans, which calculate interest to the date of payment receipt. As an example, when borrowers pay their February mortgage payments, they are paying the January interest. This method of calculating interest is based on a 360-day year in which each month has 30 days.[/vc_column_text][/vc_tta_section][vc_tta_section title=”How long does the loan process take?” tab_id=”1494343450273-ba38f0ca-84db8dea-ec21″][vc_column_text]The number of days from application to closing can vary from just a few days to 45 or more days, depending on a number of factors. Some of the factors include: loan type, whether an appraisal is needed, and title clearance. Time delays also occur if outside sources or the borrowers do not promptly provide documents to the lender.[/vc_column_text][/vc_tta_section][vc_tta_section title=”How much time will it take to close my loan (sign the loan documents)?” tab_id=”1494343451029-2d13dd19-9bcd8dea-ec21″][vc_column_text]Generally, the process takes as long or short as the borrower wishes. Explaining and signing the documents takes approximately 30 to 45 minutes. However, the borrower may choose to sign the documents and be on his/her way or ask a number of questions and spend more time. Closings may also vary from closing agent to closing agent.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Must I use the mortgage company that my builder directs me to?” tab_id=”1494343451811-8633d3ff-64568dea-ec21″][vc_column_text]No. It is your mortgage and you may decide upon the lender. However, most volume builders are effectively |forcing| their buyers to use their in-house mortgage company by refusing to pay certain fees or even altering upgrade packages based upon them getting or loosing the mortgage. This |forced-use| game most often spells higher interest rates for the buyer compared to what is available in the open marketplace.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What benefits do I receive from private mortgage insurance?” tab_id=”1494343452615-f92c7af9-410a8dea-ec21″][vc_column_text]Prior to the existence of private mortgage insurance, individuals typically could not purchase a home unless they had a down payment of at least 20% of the purchase price. Private mortgage insurance benefits the mortgage lender directly by reducing the costs associated with borrower default. It also benefits consumers by lowering down payments, thereby allowing more people to achieve home ownership.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What do I do if I receive a tax statement?” tab_id=”1494343453472-468e534c-45ea8dea-ec21″][vc_column_text]Many tax authorities will mail an informational copy of the real estate tax statement to the homeowner in addition to the Credit Union. However, there are some statements tax authorities do not forward to the credit union, and in special cases we will need your assistance in obtaining the bill. If you receive a statement for any of the following, please forward it to our office by mail or fax.
- delinquent real estate taxes
- supplemental or additional real estate taxes
- special assessments
if the tax authority will not honor a bill request from another party.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is preapproval or prequalification?” tab_id=”1494343896711-d8eadef1-feac8dea-ec21″][vc_column_text]These are similar terms thrown loosely around by many loan officers. They essentially mean that a mortgage professional has reviewed your qualification ability from a credit, income, debt obligations, and assets available for the purpose of getting a home mortgage.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is underwriting?” tab_id=”1494343926535-b7dfb58d-b3618dea-ec21″][vc_column_text]Underwriting is the process of evaluating a loan to determine whether the loan is a good risk.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Why does the title have to be cleared before I can get a mortgage?” tab_id=”1494344032652-d8090983-7ddd8dea-ec21″][vc_column_text]When a lender makes a mortgage loan (other than a home equity loan), the lender typically requires a first lien position. This means there can be no other outstanding liens against the property that are superior to the new mortgage. Liens can result from a variety of sources, such as home equity loans or lines of credit, child support judgments, divorce settlements, delinquent taxes, and special assessments. Most realtors, mortgage companies, title companies, and escrow companies will assist the seller and/or borrower in clearing title. The ultimate responsibility, however, lies with the sellers of the property who are warranting clear title to the buyers. It is important the buyers receive clear title from the sellers so there are no future claims against their property ownership rights.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Why is the Annual Percentage Rate (APR) on the Truth in Lending Disclosure higher than the rate shown on my note, which is the rate I thought I chose?” tab_id=”1494344083376-a35b85e5-ce828dea-ec21″][vc_column_text]All lenders are required by the Real Estate Settlement and Procedures Act (RESPA) to show the rate which will be charged on the note signed at closing, including the total cost to obtain the loan. This includes, but is not limited to, the total interest paid over the life of the loan, assuming the full term is carried out at the note rate, plus certain closing costs. Closing costs could include prepaid interest, Private Mortgage Insurance/FHA Mortgage Insurance Premium/ or VA Funding fee, whichever may be applicable, and various miscellaneous costs including, but not limited to, underwriting fee and tax service fee, may be charged. All of these “Finance Charges” are taken into consideration when calculating the APR to give a more accurate picture of the total cost of the loan.[/vc_column_text][/vc_tta_section][/vc_tta_accordion][vc_empty_space height=”25px”][/vc_column][vc_column width=”1/6″][/vc_column][/vc_row][vc_row css=”.vc_custom_1681214263115{margin-right: 10px !important;margin-left: 10px !important;}”][vc_column width=”1/6″][/vc_column][vc_column width=”2/3″ offset=”vc_hidden-lg vc_hidden-md vc_hidden-sm”][vc_column_text]
Frequently Asked Questions
On Real Estate (Mortgage)
[/vc_column_text][vc_empty_space height=”10px”][vc_tta_accordion style=”flat” color=”black” c_align=”center” active_section=””][vc_tta_section title=”How is interest calculated on a mortgage loan?” tab_id=”1619017632383-c425bdca-6c17″][vc_column_text]Most mortgages originated today calculate interest in arrears, unlike consumer loans, which calculate interest to the date of payment receipt. As an example, when borrowers pay their February mortgage payments, they are paying the January interest. This method of calculating interest is based on a 360-day year in which each month has 30 days.[/vc_column_text][/vc_tta_section][vc_tta_section title=”How long does the loan process take?” tab_id=”1619017632496-82575c58-446e”][vc_column_text]The number of days from application to closing can vary from just a few days to 45 or more days, depending on a number of factors. Some of the factors include: loan type, whether an appraisal is needed, and title clearance. Time delays also occur if outside sources or the borrowers do not promptly provide documents to the lender.[/vc_column_text][/vc_tta_section][vc_tta_section title=”How much time will it take to close my loan (sign the loan documents)?” tab_id=”1619017632613-791728f6-7926″][vc_column_text]Generally, the process takes as long or short as the borrower wishes. Explaining and signing the documents takes approximately 30 to 45 minutes. However, the borrower may choose to sign the documents and be on his/her way or ask a number of questions and spend more time. Closings may also vary from closing agent to closing agent.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Must I use the mortgage company that my builder directs me to?” tab_id=”1619017632740-fe5189ed-b58e”][vc_column_text]No. It is your mortgage and you may decide upon the lender. However, most volume builders are effectively |forcing| their buyers to use their in-house mortgage company by refusing to pay certain fees or even altering upgrade packages based upon them getting or loosing the mortgage. This |forced-use| game most often spells higher interest rates for the buyer compared to what is available in the open marketplace.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What benefits do I receive from private mortgage insurance?” tab_id=”1619017632852-37fe3787-2a5a”][vc_column_text]Prior to the existence of private mortgage insurance, individuals typically could not purchase a home unless they had a down payment of at least 20% of the purchase price. Private mortgage insurance benefits the mortgage lender directly by reducing the costs associated with borrower default. It also benefits consumers by lowering down payments, thereby allowing more people to achieve home ownership.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What do I do if I receive a tax statement?” tab_id=”1619017632982-a92b124c-ace6″][vc_column_text]Many tax authorities will mail an informational copy of the real estate tax statement to the homeowner in addition to the Credit Union. However, there are some statements tax authorities do not forward to the credit union, and in special cases we will need your assistance in obtaining the bill. If you receive a statement for any of the following, please forward it to our office by mail or fax.
- delinquent real estate taxes
- supplemental or additional real estate taxes
- special assessments
if the tax authority will not honor a bill request from another party.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is preapproval or prequalification?” tab_id=”1619017633103-8c057155-738f”][vc_column_text]These are similar terms thrown loosely around by many loan officers. They essentially mean that a mortgage professional has reviewed your qualification ability from a credit, income, debt obligations, and assets available for the purpose of getting a home mortgage.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is underwriting?” tab_id=”1619017633222-931792fe-414a”][vc_column_text]Underwriting is the process of evaluating a loan to determine whether the loan is a good risk.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Why does the title have to be cleared before I can get a mortgage?” tab_id=”1619017633332-0dfa5d2a-c8db”][vc_column_text]When a lender makes a mortgage loan (other than a home equity loan), the lender typically requires a first lien position. This means there can be no other outstanding liens against the property that are superior to the new mortgage. Liens can result from a variety of sources, such as home equity loans or lines of credit, child support judgments, divorce settlements, delinquent taxes, and special assessments. Most realtors, mortgage companies, title companies, and escrow companies will assist the seller and/or borrower in clearing title. The ultimate responsibility, however, lies with the sellers of the property who are warranting clear title to the buyers. It is important the buyers receive clear title from the sellers so there are no future claims against their property ownership rights.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Why is the Annual Percentage Rate (APR) on the Truth in Lending Disclosure higher than the rate shown on my note, which is the rate I thought I chose?” tab_id=”1619017633444-1e9f6fa9-1d91″][vc_column_text]All lenders are required by the Real Estate Settlement and Procedures Act (RESPA) to show the rate which will be charged on the note signed at closing, including the total cost to obtain the loan. This includes, but is not limited to, the total interest paid over the life of the loan, assuming the full term is carried out at the note rate, plus certain closing costs. Closing costs could include prepaid interest, Private Mortgage Insurance/FHA Mortgage Insurance Premium/ or VA Funding fee, whichever may be applicable, and various miscellaneous costs including, but not limited to, underwriting fee and tax service fee, may be charged. All of these “Finance Charges” are taken into consideration when calculating the APR to give a more accurate picture of the total cost of the loan.[/vc_column_text][/vc_tta_section][/vc_tta_accordion][vc_empty_space height=”25px”][/vc_column][vc_column width=”1/6″][/vc_column][/vc_row][vc_row][vc_column offset=”vc_hidden-xs”][vc_btn title=”Learn More About Our Real Estate Service” color=”green” align=”center” css_animation=”bounceIn” link=”url:https%3A%2F%2Fmosaicmanagementltd.com%2Fwhat-we-do%2Freal-estate%2F|||”][vc_empty_space height=”25px”][/vc_column][/vc_row][vc_row][vc_column offset=”vc_hidden-lg vc_hidden-md vc_hidden-sm”][vc_btn title=”Learn More About Our Real Estate Service” color=”green” align=”center” css_animation=”bounceIn” link=”url:https%3A%2F%2Fmosaicmanagementltd.com%2Fwhat-we-do%2Freal-estate%2F|||”][vc_empty_space height=”25px”][/vc_column][/vc_row]