Lehigh Valley Real Estate Blog, Home Buying & Selling Information

Mortgage Problems when Purchasing a Lehigh Valley Home

It's all over the news! Home Buyer's can't get a Mortgage.

This isn't true. What is true is that every mortgage company out there wants all of the t's crossed and the i's dotted. More than likely they will be trading or selling your mortgage to another company and they want to make sure everything is correct.

Many of the problems, I see before a closing involve last minute bank account statements or proof of a gift from a family member.

A Lehigh Valley Home Buyer cannot have last minute money put into a bank account without providing proof of where it came from. This isn't dependent on the mortgage company but government guidelines.

The best advice I can give is if you are asked for a document from your mortgage company supply it asap.

Visit www.lehighvalleyhomesonline.com for more Lehigh Valley Home Buyer or Seller information. 

Mortgage Providers - Fees

Mortage companies, by law, are required to fully disclose all fees but it is up to you as the client to make sure they do so. Mortgages and rates are not rocket science, you just need to know what questions to ask.

Examples:

Can you provide me with a GFE (Good Faith Estimate) which discloses all fees including broker fees, origination fees, points, and application fees?

What is the interest rate and how long do I have to lock this rate?

Does this interest rate include any buydown monies? (should be disclosed on GFE)

Beware that the company with the best rate may not be the best company to use. It is essential to determine whether or not you will be paying for this rate at the closing table.

Pennsylvania is a state where "Time is of the Essence". The Agreement of Sale contains timelines for the mortgage company that must be met. It is essential that an out-of-state lender is aware of these timelines and will abide by them. Agents and the home sellers are typically looking for a local mortgage company/bank or at least a familiar name. In a multi-bid situation, this can be the deciding factor when a home seller is comparing similar contracts.