Frequently Asked Questions
- Why do you need settlement statements on all properties I have purchsed in the past year?
- What is a pre-payment penalty, and will I have to pay one?
- May I have a copy of my credit report?
- Can you use a copy of the credit report that I got online?
- Are there closing costs? Am I required to pay them?
- If a closing date is specified, why doesn't close on or before that date?
- Why can't I recieve the closing package from the title company 3-4 days before closing so I can look it over or have my attorney review the documents?
- What funds will be needed for closing?
1. Why do you need settlement statements on all properties I have purchsed in the past year?
That is a requirement by the lender. This applies to all mortgages and equity lines less than one year old.
2. What is a pre-payment penalty, and will I have to pay one?
This is a penalty due the lender if the loan is paid off early either through a refinance or a sale. The pre-payment penalty for these loans is disclosed on the Consrtuction Loan Disclosure in the original application package and is also disclosed by the closing departments. The final pre-payment penalty, if any will disclosed on the modification documents.
3. May I have a copy of my credit report?
Yes, under theFair Credit Reporting Act, you may obtain a copy of your credit for use in this transaction. A copy may be requested from your lender.
4. Can you use a copy of the credit report that I got online?
No we cannot. We must use the residential credit report that I got online to close the loan? Although a recent copy of your report may expedite the pre-approval process.
5. Are there closing costs? Am I required to pay them?
Closing fees and costs are disclosed on the ood Faith Estimate and are part of the investment figure that was given to you. The builder is paying a portion of the closing costs for you at the pre-construction closing.
6. If a closing date is specified, why doesn't close on or before that date?
Initial closing dates are tentative. Aclosing date is projected base on when we recieve your completed application package. We cannot close the loan untill you are fully approved by the lender and we have assigned a lot for your home. We also require a title committment and appraisal prior to closing the loan.
7. Why can't I recieve the closing package from the title company 3-4 days before closing so I can look it over or have my attorney review the documents?
The lender will not allow the documents to be dated that far in advance. The closing documents are time sensitive and date specific. The time the lender allows is 1-2 days. WE CANNOT STRESS ENOUGH THE IMPORTANCE OF ENSURING THAT ALL REQUIRED SIGNATURES (AS INSTRUCTED) ON ALL DOCUMENTS ARE RETURNED TO THE TITLE COMPANY IMMEDIATLY TO AVOID DELAYS IN YOUR CLOSING. ADDITIONAL FEES MAY BE INCURRED IF PROPER SIGNATURES ARE NOT SUBMITTED ON TIME.
8. What funds will be needed for closing?
The estimated cost required at closing is the total cash to close required on the Good Faith Estimate in the loan package minus any pre-paids deosits (i.e. appraisal and credit report fee, lot deposit, building deposit.)
Call Toll Free @ (877) 258-3121/ (877) BLUE-121