to Loan Closing--
Tips to Help Minimize Home Financing Surprises
Sometimes surprises are a good thing. A birthday,
anniversary, or a retirement party are all great occasions for a
surprise. But when buying or refinancing a home, the last thing
you want to be surprised with are changes in your loan program,
rate, or closing costs between the time of application and your
At Baylake Bank, we take pride in our success with helping
our clients achieve and maintain their dreams of home ownership.
Weíve established long-standing relationships and have
experienced repeat business from customers because our mortgage
experts provide quality information, consistency, and assistance
throughout the entire home financing process.
There are also steps a home owner can take to help the home
financing process go more smoothly. Follow these tips to help
you avoid any last minute closing table surprises:
1. Review your credit report before you apply for a
mortgage. Your credit is your most valuable asset. Check
for errors and have them corrected prior to applying for
your mortgage. Gather your information ahead of time and be
2. Fully disclose everything at the beginning of the
application process. There is no such thing as
oversharing at this stage. The information you provide at
application and the initial credit check is used to offer
the best product and rate to meet your financing needs.
Employment and credit history as well as debt-to-income
ratios are key in determining
your rate and program.
3. It is best not to obtain new credit during the
mortgage financing process, and it is important to let
us know if there is a change in employment after
application. Once the verification and underwriting process
starts, updates can be made; however, this might also lead
to changes to your loan term and rates.
4. Understand loan-to-value. Loan programs and rates
offered depend on the loan-to-value ratio you will have
after the loan closes. An appraisal will be used to
determine the value of a property. If the value comes in
lower than was initially anticipated, an adjustment may need
to be made to the rate and program initially offered. If you
are purchasing, know the property you are buying and have an
inspection done. If refinancing, know the true value of your
5. Understand your lock agreement. It is important to
know that your lock agreement does not unconditionally
guarantee your terms. Both parties have an obligation to
deliver the commitment. With rates continuing to be low,
everyone is busy. The service providers used in the process
may be backed up, causing a delay. Understand this and be
proactive. Protect yourself, remember the tips above and
honor the timeline presented by your Loan Officer for
returning signatures and verifications so they have time to
process your file in a timely manner.
6. Donít be afraid to ask questions. Financing is our
job. You can trust and rely on us to guide you and inform
you from application to closing. With rates remaining
incredibly low and values on homes rising, it is still the
perfect time to buy a home. In addition, if you havenít
refinanced, it might be good to revisit the rate of interest
you are currently paying to see if there is room for
improvement. Donít be left regretting having missed this
Call your Baylake Bank Mortgage Expert today to
start you on your way!
Equal Housing Lender. Equal Opportunity Lender.