The Hughes Team

The "educational documents" that contain information that borrowers should know before starting the loan process should be read well in advance of closing.

Notice of no oral agreemnt

Notice of right to cancel

Documents you need after closing

First payment letter

PMI (Private Mortage Insurance) disclosure

Checking the deal in transactional documents on the day before closing

Click here for details

The major objective of a closing is to sign contracts and disburse funds.  This only requires a few documents. But the buyer is often confronted with 30 or more documents that are either required by the federal or state government, or by lenders protecting themselves against legal liabilities. The buyer has the legal right to receive all documents 24 hours prior to closing. Many of the documents are junk documents that contain no useful information but are are disclosures that the law requires lenders to provide. Other documents acknowledge that the borrower has been told that the lender who made the loan may not service it, that the borrower has received the appraisal report, that payment delinquencies have been reported to a credit reporting agency, etc.

Click here for details

A credit score gives a picture of your credit situation at a given point in time. When you are in the market to purchase a home, order a copy of your credit report at least 90 days prior. The article below gives you the names of three major credit reporting agencies. Ask your mortgage broker or lender to interpret your credit report and ask what you can do to improve your credit score. Lenders like to work with borrowers who have a good history of managing credit.

Click here for details

It was common to be able to lock the quoted price. These days with tighter underwriting requirements and increased risks to lenders of closing a loan, locks are usually delayed for some days, sometimes for weeks. This means that the lock price can differ from the price quote on which the borrower made a selection.

Click here for details

Low rates are offered when the borrower pays points to the lender, which means up front cash. High rates area offered when the lender pays points to the borrower that are being used to borrower's settlement costs. On a 30 year fixed rate mortgage, a lender might offer ten or more combinations.

Click here for details