Your Land Title Registry Offices Role
Land title registry offices are part of your provincial or territorial government. These offices register official property titles. They have processes to make changes to a propertys title.
You, your lawyer or your notary must provide your land registry office with all the required documents. Once it receives the documents, your land registry office removes the lenders rights to your property. They update the title of your property to reflect this change.
Title Search And Insurance
A title search and title insurance provide peace of mind and a legal safeguard. They ensure that when you buy a property, no one else can try to claim it later. A title search is an examination of public records to determine and confirm a propertyâs legal ownership and find out what claims, if any, exist on the property. If there are any claims, they may need to be resolved before the buyer gets the property.
Title insurance is indemnity insurance that protects the holder from financial loss sustained from defects in a title to a property. It protects real estate owners and lenders against loss or damage stemming from liens, encumbrances, or title defects.
What Are Micro Condos Will Banks Mortgage Them
Micro units are any condo units that are under 500 square feet in internal size. Most studios and some of the smaller 1 bedroom units fall in this category. The big-5 banks generally dont like to mortgage anything under 500 sq.ft, so you may have to turn to alternative lenders to get this done.
As our market continues to appreciate, the affordability of 350-450 sq.ft studios is increasingly attractive to first-time buyers and investors alike, but, for the time being, you may be asked to put down more than 20% or pay higher rates.
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Interest Rates Could Climb
Interest rates can change in the blink of an eye. After the Brexit vote, mortgage rates dipped to near-historic lows. But within weeks, some rates were climbing again. If youve moved on to another lender whos offering you a lower interest rate, it could change if you havent agreed to a rate lock.
There are benefits and drawbacks to locking in a mortgage rate. A rate lock could protect you if mortgage rates rise before you close on your home. But if rates go down, locking in your interest rate could be a waste of time and money .
Get Help From A Clever Partner Agent
You will probably only go through the home-buying process a few times in your life. It can be stressful. Reach out to a local Clever Partner Agent who will help you every step of the way.
These professionals can recommend mortgage companies their previous clients have had good luck with in the past. They will help you find a house that you can afford and will negotiate with the homeowner, so you get the lowest price possible.
Your Clever Partner Agent will prepare you for the closing process and will tell you whether you qualify for Clever Cash Back. If you are purchasing a home priced over $150,000, you could be eligible to receive 0.5% of the homes purchase price back. This is an actual check we send to you, with no rules or restrictions on how its spent.
Reach out to Clever today. Take the stress out of the home buying process.
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What Is The Builders Lender Trap
Builders have also been known to employ predatory lending tactics that essentially force you to work with their preferred lender. For example, some builders will require you to present a “commitment letter” from your lender that promises financing up to a year in advance of closing. The builder is well aware that no lender will agree to these terms, leaving the homebuyer with no option but to go with their recommendation. If youre ever presented with a situation like this, we can help you work around it. However, it should probably be taken as a red flag that your builder is trying to scam you.
How Much Money Should You Save Before Buying A House
How much money you should save before buying a home depends on how much of a downpayment you might need to buy a house. If a home you want to purchase costs, say, $200,000, you might need a 20% downpayment, which would be $40,000, for example.
Even if you don’t need a 20% downpayment, and not every buyer does, it may be useful to have money to pay for inspection fees and anything else that might come up when househunting.
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What Is A New Construction Home
Lets start with the basics: A new construction home is any property that has not been occupied since it was built. If youre buying from a builder, your new construction home most likely started out as a simple plot of land. One day, a keen-eyed developer came along, purchased the land, and divided it into buildable lots. They then sold the land to a builder who invested time and money to construct properties on each lot that could be sold to homebuyers for a profit.
What If Youre Refinancing
If youre closing on a refinance loan, you won’t have as many scheduling concerns as a buyer of a new property. Also, the closing costs will likely be lower since you won’t have to pay for an inspection or fees like a title search. But the closing date can still make a difference.
Many people refinance to get a lower interest rate. You’ll have to pay interest on your existing loan for the days leading up to your closing, as well as interest for the upcoming days of the month on your new loan. If you close earlier in the month, youll pay less interest with your new, reduced rate. It makes more sense to close on your refinance as early as you can in the month to save money.
Scheduling your closing date can make a difference. Speak to a Home Lending Advisor to learn more about closing and to get help with your homebuying journey.
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When Is My First Mortgage Payment Due After Closing
- Mortgages & Financing
- When is My First Mortgage Payment Due After Closing?
One of the first questions new homeowners ask is when is my first mortgage payment due? Let us help with that! Your first mortgage payment is due on the first day of the second month that follows your mortgage closing. Furthermore, before your first mortgage payment, you have to pay your down payment and closing costs on the home, which are separate from your mortgage payments.
Paying your first mortgage payment in the second month after you close on your home will give you some time to breathe between your closing costs and downpayment and paying your mortgage. Learning how mortgages work can help your first mortgage payment go smoothly.
The Loan Process For Financing New Home Construction
March 24, 2016 By Justin McHood
Financing new home construction is more detailed than any other type of loan. Banks are less willing to hand out these loans to just any borrower because they hold such an element of risk. If you do not have an adequate credit history or have any other factors that make your loan profile seem risky, you will likely not be able to obtain the loan. If you are among the lucky that are able to secure this type of loan, here is the process that you will undergo.
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Pick Your Payment Preference
There are different ways to pay your mortgage. The easiest method is autopay. This will ensure that your mortgage payments always arrive on time.
Autopay involves either:
- allowing your lender to make automatic withdrawals from your bank
- having your bank mail a check automatically to the lender each month
Some mortgage programs actually offer a discount in the fees if you agree to set up an autopay. It reduces the risk to the lender that you will miss your payment.
A second option is to mail a check to your lender. Give yourself a little leeway and put it in the mail at least five business days before the first of the month. Check to see that the funds have cleared within your grace period. The risk here is that the payment could get lost or delayed in the mail.
A third option is to make an online payment to the lender. You may be able to do this through the app or website of your bank or mortgage lender.
A fourth choice is to call the lender. Provide your credit card information to make a phone payment. You may be able to do this via a live customer service representative or an automated option.
Note that some payment options may carry an extra charge, Brousseau notes. Also, find out how long the processing time is with your payment option. If the payment takes too long to process, it may arrive late.
Things To Do After Closing
There are several things you may want to do after closing , and there are a number of things you should do.
We will just cover the basic shoulddo items.
Secure your closing documents You may get bunch of paperwork, or you may get a digital file. Regardless of how you receive them, youll want to make sure your documents safeguarded. Most homeowners choose to put physical documents in a fireproof safe or a safety deposit box.
Change your drivers license Every state has different laws for address changes. Some states require that you change the address on your drivers license within ten days, and others allow up to 30. Check with your local state laws.
File homestead exemption The Homestead Exemption helps eligible homeowners save on property taxes by excluding a portion of the property value from tax assessment. Rules vary by state.
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Issues Related To The Title Or Deed
As your lender continues the approval process, theyll do a title search on the home. A property title shows who owns the home and if that person has the right to sell that home. Before that party can sell the home, they need to settle any outstanding liens or claims. A property title search will look to find any outstanding liens, deed restrictions or claims on the property.
Situations where property title searches may cause closing delays include debts to contractors who worked on the home, outstanding taxes, child support liens and bankruptcies. If a buyer runs into a title search issue, it could mean the deal doesnt happen.
Negotiate For A Better Interest Rate
Negotiate with your current lender. You may qualify for a discounted interest rate that is lower than the rate quoted in your renewal letter. Tell your lender about offers you received from other financial institutions or mortgage brokers. You may need to provide proof of the offers you receive. Make sure you have this information on hand.
If you dont take action, the renewal of your mortgage term may be automatic. This means you may not get the best interest rate and conditions. If your lender plans on automatically renewing your mortgage, it will say so in the renewal statement.
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Pay More To Pay Off Early
Note that most people make 12 monthly mortgage payments a year. But others pay more than 12. This allows them to pay off their loan early, says Bruce Ailion, Realtor and real estate attorney.
A popular method is making a 13th payment toward your principal once a year, Ailion says. With this approach, you choose a month when you have extra funds. Then, you make two payments that month. You would make your normal payment on the first. But youd make an extra full payment on the 15th of the same month.
Ailion suggests checking with your lender first.
You want to make sure your extra payment is credited properly, he says. Also, not all lenders will permit this method of payment.
Costs To Change Lenders
Make sure you find out the costs of changing lenders, such as:
- setup fees with the new lender, which may include discharge, registration, transfer and/or assignment fees from your current lender
- an appraisal fee to confirm the value of your property
- other administration fees
Ask if your new mortgage lender is willing to pay for some or all of your costs to switch.
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How To Make Mortgage Payments
Lastly, lets talk about how to make a mortgage payment to your loan servicer.
First things first, note that I said loan servicer, not lender or broker or any other entity.
The loan servicer is the company that actually collects your mortgage payment each month, and may not be the individual or company that originated your loan.
So pay close attention to who this is, and note that mortgage loans are often transferred from one servicer to another, especially shortly after closing.
In terms of paying, we see from the graphic above that lists the most common ways to pay a mortgage.
The top three are auto-pay, via the servicer website, and by mail.
Less common ways are in-branch, wire transfer, phone pay, and other means, which probably includes paying the mortgage with a credit card.
In summary, speak with your loan servicer once you take out your mortgage to ensure your payments are processed properly. Rules vary and its best to get all the answers straight from the horses mouth.
Get A Pest Inspection
A pest inspection is separate from a home inspection. It involves a specialist ensuring that your home does not have any wood-destroying insects, such as termites or carpenter ants. Pests can be devastating for properties made primarily of wooden material. Many mortgage companies mandate that even minor pest issues be fixed before you can close the deal.
A small infestation can spread to become very destructive and expensive to fix. Wood-destroying pests can be eliminated, but you’ll want to ensure the issue can be resolved for a reasonable fee. Better yet, you might be able to get the seller to pay and have pests eliminated before you complete the purchase. Pest inspections are legally required in some states and optional in others.
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Compromise By Closing In The Middle Of The Month
When it comes to choosing a closing date, its really a choice between saving on interest and having more time before your mortgage payment comes due. If you dont know what to do, you can always make your closing date fall in the middle of the month. That way, you can avoid spending a ton of money on interest and benefit from having a month and a half left before the mortgage payments kick in.
Can Your Closing Date Impact Your First Mortgage Payment
Your first mortgage payment is typically due the first day of the second month that comes after you close. If you close toward the beginning of the month, you won’t have a mortgage payment for almost two months, but you will need to bring more money to closing to cover the interest. If you close at the end of the month, you’ll make your first payment in a little more than one month.
Arranging your closing to delay your mortgage payments could free up money to put toward moving expenses and closing costs. This can be appealing if youre rolling most of your closing costs into your loan.
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After Closing A Home Loan
After closing a home loan and completing the home loan process with the best mortgage lender in Dallas there are still some to do items that can save time and money.
The Mortgage Mark Team has compiled a helpful list since we want to be your top recommended mortgage broker in Dallas. Our recommendation is to set appointments with yourself on your calendar and include this pages URL as a reference.
Home Closing Checklist For Buyers
Before closing day, review the following checklist to ensure youve got everything in order to make the closing day process as smooth as possible.
Contact the closing agent. Once you know where and who your closing agent is, its a good idea to contact their offices to see if they have any special instructions for you. They will typically have a list of items youll need to bring.
Review your closing documents ahead of time. Legally, you should receive your closing documents three business days before closing. Make sure you read them prior to closing day so you understand what youre signing and check that there are no errors. Take notes if you have questions or concerns you might want to address them before the closing.
Check the basics. Double-check all of the basics spelling, numbers, names, etc. just to make sure there are no small errors that could turn into bigger issues down the road.
Check the fees. Your most recent loan estimate should be close to your closing disclosure. Some fees may change a little, but there shouldnt be any big surprises at this stage.
Review seller responsibilities. Review your final walk through checklist to make sure the seller has taken care of their responsibilities.
Be payment ready. Expect to write that check for closing costs. Plan in advance if youre transferring funds from another account so they are cleared.
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