Understanding Your Loan: Cash And Transaction Summaries

Posted on September 29, 2016 by firsttitleandabstract

Page 3 of your Closing Disclosure will compare cash requirements from your Loan Estimate to your actual final charges.

If “Did this change?” is marked “YES” there will be explanation of the changes made regarding the cash to close.

The bottom line final “Cash to Close” is the money you will need in-hand within three business days of the closing.

Understanding Your Loan: Cash Transaction Summaries

If your transaction has a Seller the summary table will show a line by line comparison of Borrower to Seller transaction details.

If there is no Seller you may see a Payoffs and Payments table instead.

Review the summary tables to understand the transaction and your financial commitments at loan consummation.

Don’t let the amount of cash you need to close be a surprise, or a source of anxiety.

We’re experienced at helping our buyers estimate the cast to close requirement within a few hundred dollars, or less.

Let us help!

As the oldest and most established title company in Naples and Marco Island, our experienced staff is prepare to assist you with every aspect of your closing.

First Title & Abstract, Inc. — “Putting You FIRST!”

Understanding Your Loan: Additional Information Can Be Important

Posted on September 28, 2016 by firsttitleandabstract

VISIT THIS LINK FOR INFO ABOUT PAGE 4 OF THE CLOSING DISCLOSURE:

Understanding Your Loan: Additional Information

The information found on Page 4 of your Closing Disclosure is important.

And you won’t find a Naples title company which will take the time to explain these things to you.

But our title attorney on staff, and Naples real estate attorney available for your closing, along with our closers and title agents are very familiar with the new Closing Disclosure form, and all the info it contains.

It is NOT just standardized form with information that is identical for every loan.

It includes important explanations about features of your loan, including:

Assumption: can this loan be transferred to another person if you sell or transfer the property?

Demand: can the lender require early repayment of the loan?
Late Payments: what penalty, after what period, applies?
Negative Amortization: does this loan schedule or allow payments that do NOT fully cover the interest due, resulting in increased loan principal?
Partial Payments: what is THIS lender’s policy?

You should also review Escrow Account details to understand whether you will pay additional property costs via regular Escrow Account payments or handle them yourself directly.

Understanding Your Loan – Beware of Negative Amortization!

A trap for many borrowers are those loans with negative amortization.

If your loan has this feature, please contact us, as we can help you fully understand the potential risks associated with such a mortgage.

At First Title & Abstract, Inc., we believe understanding your loan is critically necessary before you sign your paperwork.

We will take the time to make sure you know what you’re signing, before the closing.

Please call our offices in Naples, Florida or Marco Island, Florida, and we will be glad to discuss your loan with you!

First Title & Abstract — “Putting You FIRST!”

Understanding Your Loan: Closing Disclosure Page 1

Posted on August 10, 2016 by firsttitleandabstract

UNDERSTANDING YOUR LOAN: Closing Disclosure Page 1

Closing Disclosures: Understanding Page 1

The first page of your Closing Disclosure documents:

The Loan Amount – the total you will actually borrow
The Interest Rate – which does NOT include the fees factored into the APR on Page 5

If this loan has a penalty for pre-payment or includes a balloon payment Page 1 will summarize the terms.

UNDERSTANDING YOUR LOAN: CLOSING DISCLOSURE PAGE 1

Projected Payments will show the chief cost components – Principal & Interest, Mortgage Insurance and estimates of your Escrow Payments over the life of the loan. You may see different columns for different periods if changes in terms such as mortgage insurance change payment totals.

Closing Costs summarizes your loan closing expenses, and Cash To Close adds the additional amounts due to give you the cash balance you will need in 3 business days.

At First Title & Abstract, Inc. we were the first title company in Naples and Marco Island.

Our long history of service to the real estate community and dedicated title professionals can offer you answers on every aspect of your closing, including mortgage financing questions.

Please don’t hesitate to call upon us. We’d be happy to discuss the terms of your closing disclosure, and explain matters in consultation with your mortgage lender.

At First Title & Abstract, Inc. we believe in “Putting You FIRST!”