topic Re: General Question in Mortgage Loans

General Question

Anonymous — Tue, 03 Jan 2012 21:11:42 GMT

After closing, typically when is the first payment due?

Re: General Question

Lel — Tue, 03 Jan 2012 21:18:56 GMT

@Anonymous wrote:
After closing, typically when is the first payment due?

For us, we closed in early March and the first payment was due on May 1. The monthly payments reflect the accrued interest and principal due for the prior month. At the time of closing, we prepaid interest for the remainder of March; hence, no payment was due on April 1. I think this is the standard operating procedure for mortgages.

Re: General Question

llecs — Tue, 03 Jan 2012 21:31:50 GMT

Ditto. We closed on January 31 and payment was due March 1. I remember asking them if a payment was due the day after closing.

Re: General Question

Anonymous — Tue, 03 Jan 2012 21:48:13 GMT

Thanks Guys! Do you typically pay taxes and insurance for the year at closing, so for the remainder of the year your payment is the principal and interest?

Re: General Question

Anonymous — Tue, 03 Jan 2012 22:01:19 GMT

@Anonymous wrote:
Thanks Guys! Do you typically pay taxes and insurance for the year at closing, so for the remainder of the year your payment is the principal and interest?

Taxes and Insurance are put into your escrow account and paid once they are due. You would be paying into your escrow account monthly through-out the entire year and once the payments are due they will be automatically taken out of your escrow account for payment. Both can be paid directly from you and in which case you would receive a refund from your escrow account yearly.

Re: General Question

Lel — Tue, 03 Jan 2012 22:16:43 GMT

@Anonymous wrote:
Thanks Guys! Do you typically pay taxes and insurance for the year at closing, so for the remainder of the year your payment is the principal and interest?

Every contract is different. For us, we paid for a full year of hazard insurance at the time of closing, as well as some property taxes that were paid by the previous owner that we had to partially cover due to the change in ownership. But we didn't have an escrow account established - it's up to us to make sure that we put enough aside each year to pay the taxes and insurance. Our payments to the bank are only P&I.

Re: General Question

frogfan12 — Wed, 04 Jan 2012 01:00:59 GMT

It depends on what time of the month you close. I closed at the end of August and my first payment was due October 1.

Re: General Question

Anonymous — Wed, 04 Jan 2012 15:47:52 GMT

So I just spoke with the Lender to get preliminary info I need for applying. Once I prequalify I have to send her all the paper work (paystubs, w2's, etc). They also need 2 months bank statements; exactly what are they looking for in my statements? Average amount in account (I usually play it close bc I've been steadily paying off debts)? Will low average balances keep my loan from being approved?

Re: General Question

namvet — Wed, 04 Jan 2012 16:04:30 GMT

@Anonymous wrote:
So I just spoke with the Lender to get preliminary info I need for applying. Once I prequalify I have to send her all the paper work (paystubs, w2's, etc). They also need 2 months bank statements; exactly what are they looking for in my statements? Average amount in account (I usually play it close bc I've been steadily paying off debts)? Will low average balances keep my loan from being approved? The lender wants to see your last 2 months bank statements to see if you have any deposits that need a paper trail. You will need to have proof of where these deposits came from. Normally the underwriter is looking for possible loan deposits etc.

Re: General Question

Anonymous — Wed, 04 Jan 2012 16:09:15 GMT

Ohh ok. I was worried that I would need to start maintaining a certain balance and start freaking out if I don't. I once heard of a credit union denying someone a loan because they ate out too much. I don't eat out often, but I didn't want to be afraid everytime I swipe my card to take my kid to Chick Fil A.

Re: General Question

DallasLoanGuy — Thu, 05 Jan 2012 22:19:43 GMT

we close out the current month.... this is why you have prepaid interest.

mortgage loan interest is paid in arrears(after it has occurred)

so. if you close in January.... we close out January. No payment on Feb 1st because you have no outstanding interest. 1st payment is Mar 1st

there are rare exceptions to this rule. but this is done 99% of the time.

Re: General Question

Anonymous — Sat, 07 Jan 2012 00:35:10 GMT

If two of your credit scores are the same, what will they use as the middle?

Re: General Question

Lel — Sat, 07 Jan 2012 02:06:55 GMT

If, for example, your scores are 680, 680, and 700, then 680 will be used.

Re: General Question

Anonymous — Sat, 07 Jan 2012 02:19:56 GMT

In my case my scores are 709,709, 598

Re: General Question

namvet — Sat, 07 Jan 2012 02:26:01 GMT

Looks like 709 is the magic number for you!