TO SEE THE LOAN PROCESS EXPLAINED CLICK TO EXPAND AND PLAY - New Regulations in effect on 10/2/15 change some of the terminology but the process is pretty much the same - time consuming.

*See bottom of page for the new terminology.

 

Applying for a new home loan with the help of Classic Charleston Properties.

 

For most people, securing a mortgage loan can be one of the most demanding aspects of purchasing a home. But it doesn't have to be.I have close working relationships with some reputable lenders in Mt. Pleasant, and they've helped me understand a few things that make the process of applying for a loan a breeze. (and believe me, applying is easy, it's the waiting that is hard - see above). Your paperwork may see the processor and underwriter various times.

 

Compose a list of questions about your loan program. If you don't perfectly realize the pros and cons of all the various programs, make sure to bring a list of questions.  It is a challenge understanding the characteristics of both fixed and adjustable rate mortgages when you have never dealt with mortgages. Lenders can assist you with understanding the advantages and disadvantages of each program.

 

Decide when to lock. "Locking in" an interest rate means that the lender commits to the mortgage interest rates for the loan – normally at the time the loan application is received, but you need to know exactly when you lock the rate so you don't go away thinking you have a loan that may change in a week.  By floating the rate, you can lock the rate anytime between the day you apply for the loan and closing. Buyers who decide to float think interest rates will drop in the near future.  Determine if you want to pay additional points to reduce your rate.  When you decide to pay additional points to lower the interest rate of your loan, you will pay for them in cash at the time of closing. Each point is 1 percent of the loan value

 

TRID Related Terminology:

  • TILA-RESPA Integrated Disclosures:  New disclosures which will become effective 8/01/15. The combination of  the Good Faith Estimate (GFE), Truth in Lending Statement (TIL) and Settlement Statement (HUD-1).

    • GFE & TIL = Loan Estimate (LE)

    • TIL & HUD-1 = Closing Disclosure (CD)

  • TRID:  Acronym for TILA-RESPA Integrated Disclosures

  • Loan Estimate (LE): A new initial disclosure which combines the GFE and TIL

  • Closing Disclosure (CD): The new disclosure, provided to borrowers prior to closing, combines the TIL and HUD-1 Settlement Statement

  • Total Interest Percentage (TIP): The new TILA/RESPA disclosure has a term referred to as TIP. The TIP is the total amount of interest a consumer will pay over the loan term as a percentage of the loan amount. The TIP does not replace the APR. The new disclosures will have both the TIP and APR.

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