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What is an appraisal and who completes it?
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What is an appraisal and who completes it?

An appraisal report is a written description and estimate of the value of a real estate property. Its purpose it to determine the value of the property you are purchasing or refinancing.

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What typically happens at the mortgage loan closing?
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What typically happens at the mortgage loan closing?
The closing will take place at a title company. If you are purchasing a new home, the seller may also be at the closing to transfer ownership to you. During the closing you will review and sign several loan papers. The closing agent who conducts the closing should be able to answer any questions you have, or you can feel free to contact your Mortgage Lender if you prefer. Just to make sure there are no surprises at closing, your Mortgage Lender will contact you a few days before closing to review your final fees, loan amount, first payment date, etc.
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If someone is unable to attend a mortgage closing, what other options are there for him or her?
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If someone is unable to attend a mortgage closing, what other options are there for him or her?
If you won't be able to attend the loan closing, contact your Mortgage Lender to discuss other options. If someone you trust is able to attend on your behalf, you can execute a Power of Attorney so that this person can sign documents on your behalf. This must be arranged well in advance of the closing. We're sure to have a solution that will work for your circumstances.
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What important documents will I be signing at a typical closing?
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What important documents will I be signing at a typical closing?
Note This is the document you sign to agree to repay your mortgage. The note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments. Mortgage / Deed of Trust This document pledges a property to the lender as security for repayment of a debt. Essentially this means that you will give your property up to the lender in the event that you cannot make the mortgage payments. The Mortgage restates the basic information contained in the note, as well as details the responsibilities of the borrower. In some states, the document is called a Deed of Trust instead of a Mortgage. If your loan is a refinance, Federal Law requires that you have three days to decide positively that you want a new mortgage after you sign the documents. This means that the loan funds won't be disbursed until three business days have passed. The closing agent will provide more details at the closing. This is commonly known as the rescission period.
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Usually, how long does it take for a property appraisal to be completed?
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Usually, how long does it take for a property appraisal to be completed?
Licensed appraisers who are familiar with home values in your area perform appraisals. We order the appraisal as soon as the application deposit is paid. Generally, it may take up to 14 days before the written report is sent to us. We follow up with the appraiser to ensure that it is completed as soon as possible. If you are refinancing, and an interior inspection of the home is necessary, the appraiser should contact you to schedule a viewing appointment. If you don't hear from the appraiser within two days of the order date, please inform your Mortgage Lender. If you are purchasing a new home, the appraiser will contact the real estate agent, if you are using one, or the seller to schedule an appointment to view the home.
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If someone is purchasing a home, does he/she typically need a home inspection AND an appraisal?
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If someone is purchasing a home, does he/she typically need a home inspection AND an appraisal?
Both a home inspection and an appraisal are designed to protect you against potential issues with your new home. Although they have totally different purposes, it makes the most sense to rely on each to help confirm that you've found the perfect home. The appraiser will make note of obvious construction problems such as termite damage, dry rot or leaking roofs or basements. Other obvious interior and exterior damage that could affect the marketability of the property will also be reported. However, appraisers are not construction experts and won't find or report items that are not obvious. They won't turn on every light switch, run every faucet or inspect the attic or mechanicals. That's where the home inspector comes in. They generally perform a detailed inspection and can educate you about possible concerns or defects with the home. A home inspection will only be required if your purchase agreement states that it is a requirement of the transaction or the appraiser notes a specific area of concern. Accompany the inspector during the home inspection. This is your opportunity to gain knowledge of major systems, appliances and fixtures, learn maintenance schedules and tips, and to ask questions about the condition of the home.
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Are there any special appraisal requirements for condominiums?
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Are there any special appraisal requirements for condominiums?
Since the value and marketability of condominium properties is dependent on items that don't apply to single-family homes, there are some additional steps that must be taken to determine if condominiums meet our guidelines. One of the most important factors is determining if the project that the condominium is located in is complete. In many cases, it will be necessary for the project, or at least the phase that your unit is located in, to be complete before we can provide financing. The main reason for this is, until the project is complete, we can't be certain that the remaining units will be of the same quality as the existing units. This could affect the marketability of your home. In addition, we'll consider the ratio of non-owner occupied units to owner-occupied units. This could also affect future marketability since many people would prefer to live in a project that is occupied by owners rather than renters. We'll also carefully review the appraisal to ensure that it includes comparable sales of properties within the project, as well as some from outside the project. Our experience has found that using comparable sales from both the same project as well as other projects gives us a better idea of the condominium project's marketability. Depending on the percentage of the property's value you'd like to finance, other items may also need to be reviewed.
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What is “per diem interest” or interest due at closing?
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What is “per diem interest” or interest due at closing?
One of the more common required advances is called "per diem interest" or "interest due at closing." All of our mortgages have payment due dates of the 1st of the month. If your loan is closed on any day other than the first of the month, you'll pay interest from the date of closing through the end of the month, at closing. For example, if the loan is closed on June 15, we'll collect interest from June 15 through June 30, when the loan closes. This also means that you won't make your first mortgage payment until August 1. The majority of lenders will charge you interest beginning on the day the loan funds are disbursed. It is simply a matter of when it will be collected.

 

 

These questions and answers are provided for general information only and may not be completely accurate in every situation. The information provided is not legally binding on MutualBank or any of its affiliates or subsidiaries. For assistance with specific questions regarding your account(s), please contact us.

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