Category: New Home (3)

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New Home Financing Rates & Costs

May 31, 2023

General | Mortgage Tools | Rates & Costs | Loan Decision | Closing

How often do interest rates change?

Interest rates change regularly with the fluctuation of the market. The interest rates we quote you on the site are good for two hours. If a quote expires, you will be prompted to resubmit to receive an updated quote. Of course, once you lock or protect your rate, it will not increase as long as you close and fund your loan on or before the rate expiration date.

 

How can I customize my rate?

Once you submit, we will recommend a loan program for you. This program will be associated with a specific interest rate and possibly with points. If you’d like, you will have the ability to customize this rate. You can add or subtract points and see how this changes your rate and monthly payment. You also may have the opportunity to roll your closing costs into either your loan amount or interest rate. Once you select the program that best fits your financial objectives you will be presented with different rate options. An interest rate is not locked until you request to lock the rate and submit.

When should I start shopping for a mortgage and how do I know what I can afford?

The best time to look for a mortgage is before you look for a house. This way you’ll know exactly the amount of money you can borrow. You can use the calculators on this site to help you determine these numbers as well as your estimated monthly payments. Get pre-approved for a mortgage before shopping for a home and you’ll maximize your negotiating power. It’s free and will take only a matter of minutes to get a decision, and there’s no obligation until you want to reserve your funds.

 

What factors go into determining my personalized rate?

We evaluate your credit history and reward your good credit with a better rate. We also take into account your loan to value or LTV, as well as your income, your assets, the purpose of the loan and how you intend to occupy the property. Naturally, all of this is impacted by the current market conditions.

 

Can I lock in a loan program and interest rate online?

Absolutely! Simply complete the home loan process, choose your program, and you’ll be one click away from locking your rate. Once you have chosen your rate lock option you will need to reserve funds with a $350.00 NONREFUNDABLE fee (charged to a credit card) and SUBMIT! No need to call. No need to wait for someone to call you. You are in control! Just another feature that sets Coldwell Banker Mortgage apart from other online mortgage programs.

Once I have selected a program, what are my rate options?

You will be presented with rate options that are applicable to your loan purpose, closing date and qualification. The possible options are listed below.

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Closing on a New Home or Property

May 31, 2023

General | Mortgage Tools | Rates & Costs | Loan Decision | Closing

I have to attend closing? What are my options?

It is not required that you attend the closing, if you’ve given an acceptable power of attorney or taken the necessary steps to complete a mail away closing. Your personal mortgage processor can help determine your options based on your needs.

 

How does it benefit me to let you select the closing agent?

By choosing our closing agent, we can guarantee your closing date on any conventional loan. If we do not meet this date, we will lower your interest rate by 1/8th of a percent for the life of the loan. * Not only that, by using our network, we can assure you that you will receive a competitive price for the closing agent’s services and the superior service that you deserve.

* Approved, conventional, purchase loans only. Closing date to be mutually agreed upon between customer and bank, and customer must provide all required documentation. Timely request for payment under guarantee is required.

 

Where do I go to close the loan?

In most cases, you will go to a local Title Company or attorney’s office for the closing. If you let us select the closing agent for you, we will work with our network and try to find an agent within 15 minutes of the property.

If you prefer a different location (e.g. your office, home, bank) our preferred closing agents will work with you to try to accommodate your needs. The closing agent will have all your mortgage documents needed for closing. You may need to bring money, picture identification, etc. Your closing agent will let you know what you need to bring.

 

Can I bring a personal check to the closing?

You will need a cashier’s check or certified check for closing. Since this is such a large transaction, a cashier’s check provides verification that the funds are actually available.

 

What is title insurance and why is it required?

Title insurance protects the lender or you against losses from disputes over the title of a property. It ensures against the possibility that there may be an unknown lien or any discrepancies in ownership. You may want to consider purchasing a separate buyer’s policy to protect your interests.

 

How much title insurance do I need?

The amount of title insurance needed is based on the value of your home and the amount of your mortgage. Lenders are covered for the full value of the mortgage. This policy is required and will vary from state to state. There is a one-time fee for the policy that you pay at closing. In addition, you can obtain a separate owner’s insurance policy to cover the full value of your home. However, this additional policy is not required.

 

How much homeowner’s insurance does a lender require?

Your homeowner’s insurance policy must cover the cost to rebuild the home. The insured amount may be higher or lower than the actual purchase price as long as it meets the program requirements. The insurance company you choose can give you an actual quote based on specific information about the property.

 

How do I know if I need flood insurance?

We will perform a flood hazard determination for your property. If your home is located in a Special Flood Hazard Area, federal law requires you to purchase flood insurance. Most standard homeowner’s insurance policies do not cover loss due to flood. If you choose, you can obtain flood insurance coverage even if you are not required to do so by the lender.

 

How are my property tax bills paid?

It depends on your loan program and state requirements. Generally, if your monthly mortgage payment includes money for property taxes, these funds are held in escrow by the lender and the lender pays your property taxes as they become due. Generally, if your payment does not include property taxes, you are responsible for paying them by the due date mandated by your state.

 

What type of inspections do I need before I close on my home?

Certain inspections may be required under your particular loan program. However, depending on the home and the location, there are a variety of inspections you may want to consider before you close on your new home even if they are not required under your program, such as:

  • Home Inspections
  • Termite Inspection
  • Water Test (for well water)
  • Septic Tank Inspection
  • Radon Test
Family homes for sale in Monroe, MI

Mortgage Tools

Mar 31, 2023

General | Mortgage Tools | Rates & Costs | Loan Decision | Closing

How much down payment will I need?

The minimum down payment required depends on the mortgage program you select. Usually at least 3% is required. If you put down less than 20% on your rate may be subject to our Low Down Payment Rate Adjustment.

If you are concerned about having enough money to purchase a home you may want to consider our options for rolling your closing costs into either your interest rate or your loan amount. You will still need to come up with money for your down payment but this will help reduce the amount of additional money that you will need to bring to close.

 

When should I start shopping for a mortgage and how do I know what I can afford?

The best time to look for a mortgage is before you look for a house. This way you’ll know exactly the amount of money you can borrow. You can use the calculators on this site to help you determine these numbers as well as your estimated monthly payments. Get pre-approved for a mortgage before shopping for a home and you’ll maximize your negotiating power. It’s free and will take only a matter of minutes to get a decision, and there’s no obligation until you want to reserve your funds.

 

Do I need to sell my existing home before I apply for a new mortgage loan?

Absolutely not! You can apply for a new mortgage loan before you sell your current home. However, depending on your income and debt levels, you may need to sell your current home before you can close on your new home.

 

Why is the Annual Percentage Rate (APR) different from the interest rate?

The annual percentage rate is intended to reflect the total cost of your mortgage loan. To calculate the APR, lenders consider the interest rate on your mortgage loan, the term of the loan, and other loan fees such as closing costs, points, etc. Your monthly payment is calculated based on the mortgage note rate, not the APR. The APR will be higher than your interest rate, especially if you are paying any points.

To be used as a valid evaluation tool the APR must be loan specific. The actual APR will show up on the Truth-in-Lending statement that you will see once you have submitted your information and reserved your funds. When comparing loan programs based on APR make sure you ask each lender their criteria for determining the APR.

 

Can I be pre-approved for a loan if I have credit problems?

Mortgage providers offer mortgage loan options to customers who may not have perfect credit. If you are concerned about your credit, or have other questions about credit, speak to a mortgage professional about your credit history.

 

Calculators and Other Tools

Click here for various calculators and tools to help you understand what you can afford and what your monthly payments will be for a given home.