Baylake Bank eNews. Member FDIC
Application to Loan Closing--
Tips to Help Minimize Home Financing Surprises 

Kelly LuMaye, Mortgage Lender, NMLS #495841
Kelly LuMaye, Mortgage Lender
NMLS #495841

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 closing date.

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 prepared.

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 home.

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 opportunity.

Call your Baylake Bank Mortgage Expert today to start you on your way!

Equal Housing Lender. Equal Opportunity Lender.



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Baylake Bank | 217 N. 4th Avenue | Sturgeon Bay, WI 54235 | 1-800-267-3610