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How To Transfer The Funds To Buy A House

March 29, 2022 by Joanne Ahn

How to Transfer Funds to Buy a HouseIf you have made an offer on a house and gotten it accepted, congratulations! This is a major step, but you might be wondering how you actually pay for a house. The days of showing up to the closing table with a personal check are in the rearview mirror, as nobody wants a check for a house to bounce after the other person has already walked away with the keys. Furthermore, even if you are buying a house with cash, you certainly do not want to show up with a briefcase full of dollar bills. Here is how you will actually pay for the house. 

Wire Transfer To The Closing Attorney

When you purchase a house, you will send the funds for the down payment and the closing costs to your closing attorney. Typically, the seller has a preferred closing attorney they want to use, and you should be contacted by the closing attorney several weeks before the closing date. They will also give you a finalized document specifying exactly how much money you need to wire to the office to cover the down payment, any fees, and the closing costs. You will also need to go to your bank to arrange the wire transfer. The bank will also verify you have enough money in the account to cover the expenses. 

Monthly Mortgage Payment Gets Drafted Automatically

If you are financing the purchase of a house through another lender, you will need to set up an automatic draft payment with the lender. Even though there are some lenders who will allow you to send a physical check every month, most will encourage you to set up an automatic draft payment out of your checking account. After the sale closes, you will typically have at least one month before you need to make your first mortgage payment. The lender will help you arrange the mortgage draft payment prior to that time. 

Make Sure To Wire The Money Prior To Closing

You should try to wire the money to the closing attorney before the closing date. That way, you will offer any hiccups along the way. If you don’t wire the money in time, the sale could fall through, which can create complications you would rather avoid.

Filed Under: Mortgage Tagged With: Closing, Mortgage, Mortgage Payment

4 Tips To Ensure A Successful Closing

July 2, 2019 by Joanne Ahn

4 Tips To Ensure A Successful ClosingAs you come up to the date of your closing, there’s time to reflect on everything that led to this step. Your real estate agent, mortgage broker, title company and others all work hard to ensure a successful closing for you. They’re all in your corner, hoping for the same outcome as you. They’ve had to do a lot of work behind the scenes that you may not even be aware of. Their diligence and professionalism has already benefited you.

But did you know that it’s not all riding on your team of real estate professionals? There are things you can do to ensure a successful closing, too. 

1. Bring Your Checkbook

In other words, have extra funds available to cover unexpected costs. Anything could happen at the closing table. If there was an error in calculations, or the seller all of a sudden asks for some kind of additional compensation, you could all go home empty-handed. If you bring your checkbook, all those problems could go away and you end up with a successful closing. 

2. Don’t Forget Your ID

You probably don’t need to be reminded to bring your driver’s license with you when you drive. But did you know you’ll probably need to present your ID at the closing table? Funnily enough, people do forget, especially if you’re a woman and you’ve changed purses recently. Before you head to the closing table, double check that you have two forms of ID on you to be on the safe side.

3. Preview The Paperwork

Although everyone’s a professional, human error does occur. If possible, ask to preview the paperwork associated with the closing. Your real estate agent can help you with this step. Read through everything with a fine-toothed comb. Look for spelling errors, mistakes in addresses, and even transposed numbers. The earlier you can review paperwork, the longer the available time to get any errors corrected before the closing.

4. Bring Extra Documents With You

You don’t have to carry your filing cabinet to the closing. But it’s wise to bring relevant financial documents with you and leave them in your car. Lenders may ask for things last minute like old bank statements, a certain cancelled check or something else. 

With the help of your trusted real estate agent and home mortgage professional, your closing will likely go off without a hitch. But, just in case, keep these tips in mind.

 

 

 

Filed Under: Real Estate Tagged With: Closing, Financing, Real Estate

Surprising Things That Can Derail A Closing

July 19, 2018 by Joanne Ahn

Surprising Things That Can Derail A ClosingOnce you and the seller have negotiated an offer and you’ve been pre-approved for a mortgage, you might think that you are in the clear as far as your closing goes. However, that is not always the case. Many surprising things can put a halt to closing. Some may ultimately stop the closing altogether while others could simply cause a delay.

Here are a few unexpected things that can derail a real estate closing:

A Job Promotion 

While you might know that changing employers is one way to interfere with the closing, another deal-breaker can be switching positions with your current employer. If you are a salaried employee and switch to a non-salary commission job, for instance, you could be looking at a problem when it comes to closing on a house.

Whenever you have any change in employment, even if it is with the same employer, most lenders will require a two-year history. A new job title could be a problem at closing — even if the new position pays more money. In some cases, the lender might not be able to include the income from your new job. If so, you could quickly end up not being qualified for the loan.

Therefore, it’s best to avoid any change in employment until after closing even if it is with the same company. Talk with your mortgage finance professional regarding your personal circumstances before making any employment changes.

Last-Minute Requests for Documents

It is easy to assume that lenders will already have all the documents that they need by closing, but that is not necessarily the case. Lenders can become overwhelmed with work, especially during a hot real estate market. Lenders will sometimes realize that they need more information last-minute.

They might ask for a canceled check, copies of your rental agreement, current pay stubs or other items. If you don’t have the documentation handy, it could cause your closing to be delayed or even completely canceled if you can’t produce the requested information.

To avoid this situation, make sure that you consistently communicate with your lender throughout the loan process. 

A Delayed Transfer 

You will most likely need cash at closing. If you are relying on your bank to transfer funds right before closing, then you might be shocked if the transfer falls through at the last minute. Bugs in the bank’s system or other issues could affect the transmission.

Therefore, make sure you time your transfer to reach you or your closing agent a couple of days before closing. 

Closing on a mortgage is something that you don’t want to derail. Avoiding the above mistakes will help ensure a hassle-free closing transaction. 

From pre-approval to closing, remember that you can count on your trusted mortgage professional to remain committed to your success throughout the entire home buying process. 

Filed Under: Real Estate Tagged With: Closing, Financing, Real Estate

Joanne Ahn

Joanne Ahn


Mortgage Broker
Call (415) 999-2439
joanne.houseofmortgage@gmail.com

NMLS# 352117
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