Selecting the right mortgage lender will be one of the most important choices you ever make. Having shopped around for the right home, unless you are fortunate enough to buying for cash, you are now going to have to shop around for the most suitable lender.
You will also have to decide on the type of mortgage you are going to apply for – either fixed-rate or adjustable – and make sure you identify and understand any risky features like balloon payments and prepayment penalties that might be included. The down payment and trade-off between interest rate and points will also need to be considered.
Finding the Best Mortgage Opportunity
Generally it is best to get at three lenders to give you mortgage offers in writing so you can compare them. The Consumer Financial Protection Bureau (CFPB) advises people to also get at least three loan estimates to see exactly what costs are involved.
Having decided on a mortgage type, a down payment that will work for you, and the best possible lender for your needs, you will have to confirm your decision to proceed with the loan. Just be aware that up until this point, the lender will not have approved your loan.
Role of the Real Estate Closing Attorney
As soon as you decide to commit to a loan application, various fees including an application and appraisal fee will be due. If you are buying a home in Georgia, and your application is successful, a real estate closing attorney will draw up the legal documents required to close the deal. In many other parts of the US, settlement agents or escrow agents can do the closing, but in Georgia it must be a real estate closing attorney. Furthermore, the closing attorney will represent the lender, and will therefore be chosen by the lender. You will only get to meet this attorney at the closing. For this reason it’s advisable to get a Peachtree City attorney or attorney from your part of Georgia to review the contract and all other closing documents prior to closing. You may even want your own attorney present at the closing.
Once a loan has been approved, you will get an official five-page closing disclosure document that finalizes the loan and details all loan and other costs. By law, this document must be given to you at least three days before closing so you can check that the terms are consistent with what the lender promised, including interest and possible penalties. Once you sign the final contract, promises aren’t going to matter any more – unless they are covered in the contract. A Peachtree City attorney will be able to check this kind of detail for you, and make sure that you have been given all the paperwork prior to closing.
If you don’t have the opportunity and time to check through every document before you meet with the real estate closing attorney, you are likely to be at a disadvantage, though you can insist that the lender’s attorney explains everything in the documents you haven’t yet seen.
Cash for Closing
Purchasers also need to be aware that the full “cash to close” amount it payable at the closing. These funds must be certified. While it’s not that easy to work out exactly how much you’re going to have to pay, a real estate agent or HUD-approved housing counselor will be able to help.
Another tip to know before you meet your real estate closing attorney is that he or she will offer you title insurance. Lenders usually require lender’s title insurance to protect the money they are providing for the mortgage. But unless it has been listed as a condition of the loan, owner’s title insurance is optional. Broadly, it protects the purchaser’s financial investment in the house. Don’t wait until you get to the closing table to ask for insurance details. Find out what’s involved before the closing date.
If you want a knowledgeable Peachtree City attorney to advise or help with your real estate closing, call Slepian, Schwartz & Landgaard now.