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Frequently Asked Questions
Closing
- How long will it take to close if
I applied for my mortgage through a pre-approval
program?
If you applied through a pre-approval program and are
approved, some lenders can close within three weeks after
a purchase contract has been signed. Typically, the
entire mortgage process is 45-60 days from the application
date to the closing date.
- How much will my closing costs be?
Closing costs alone will average 2%
to 6% of the mortgage amount.
- Will the lender agree to include my closing costs in
the loan amount?
As a general rule, you typically cannot finance your
closing costs into the loan amount. However, some lenders
do have special programs under which you may be able to
finance some or all of the costs by agreeing to a slightly
higher interest rate.
- How much money will be required at the time of closing?
Consult with your individual lender and closing agent
for specifics. The amount of money needed to
close is comprised of your down payment, and closing costs,
as well as the prepaid items for your initial taxes and
insurance escrow accounts. A lender is required to provide
you with a good faith estimate of settlement cost within
three days of application. Also, 24 hours prior to your
closing, the closing agent will provide you with the final
sum of money required for the closing. This money must be
brought to the closing attorney in the form of a cashier's
check.
- Does the lender require title insurance
for purchase transactions?
Yes, a Mortgagee's Title Insurance Policy will be required.
See our title insurance subject for more information on the
coverages of title insurance.
- What homeowner's insurance requirements will I
need to meet at the time of closing?
Lenders will require a one-year paid receipt for the homeowner's
insurance policy. This must be paid before closing and must be
sent to the closing attorney prior to closing.
Back to Frequently Asked Questions
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All information contained herein is believed accurate, but not warranted. Subject to errors, omissions, change, and withdrawal without notice
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