Understanding Mortgage in NY

If you are buying real estate, you may be wondering what mortgage in NY entails. You may be feeling confused and overwhelmed. Hiring a Real Estate Lawyer can help you understand mortgage and prepare you for what to expect.

Mortgage Commitment

A mortgage commitment is the preliminary stage following an application and initial review by the bank through which they promise to lend you money under certain additional conditions which will include a commitment to provide your finances to the lender. The appraisal may still be outstanding– and that appraisal must be satisfactory. It will require proof that a clear title is being tendered by the seller to the buyer. That commitment letter, issued to be signed by the buyer, is sent back to the bank as a contract between the buyer and the bank.

Download Our Free Real Estate Guide

The Mortgage Application Process

Once you get over the home inspection hump and a home inspection rider is executed, a property inspection addendum is completed. That signals the buyer to officially apply for their loan. Traditionally, the contract specifies several days after the home inspection requirement is satisfied within which the application must be in place. Often, that period is five days after the home inspection is satisfied. The buyer should immediately gather the application, along with any supporting documents, and bring them to the loan officer.

Signing a Mortgage

When you are closing real estate, you will sign a mortgage. The mortgage documents the security interest the bank has in the property that protects it in the event that you don’t pay your mortgage or taxes, if you fail to keep insurance in place, or if you don’t properly maintain the house. If you don’t do any one or more of those things, the bank is entitled to either call the note due or foreclose upon the property. That’s very rare. Then, the mortgage is generally an irrelevant document.

If you want to know more about mortgage, contact our Buffalo office. We are dedicated to supporting you and your real estate investments.