If you are buying a home, especially for the first time, you might be feeling lost in the dark. Our experienced Buffalo real estate lawyers can answer your mortgage questions and help you through the process.
Mortgage Questions | What is a 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.
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Mortgage Questions | What is the Mortgage Application Process?
Once we get over the home inspection hump and a home inspection rider are executed, a property inspection addendum is completed. That signals the buyer to officially apply for their loan. Traditionally, the contract specifies a number of 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.
Mortgage Questions | What Should I Know About Signing 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, and I like to think that my clients do not get themselves into trouble with their lender. Then, the mortgage is generally an irrelevant document.
If you have any further questions, we would be happy to help. Please call our Buffalo office today to talk to one of our experienced real estate attorneys.