After you filled your application for mortgage loan in Kolkata, you will receive a variety of documents outlining the costs associated with your loan by your loan officer. The most important are the Loan Estimate and the Closing Disclosure. These forms are required by law and are there for your protection. This estimate provides you with an overall financial assessment your mortgage loan in Kolkata in terms and settlement charges. With this information, you can evaluate your mortgage loan offer, an even explore a few other possibilities before accepting it.
You can use your Loan Estimate to compare rates and settlement charges from other lenders. The following terms can help you understand some of the most important information on estimate form. You can always consult Riddhi Siddhi Multi Services for you finance related queries.
Loan Terms — This section defines the basic terms of your mortgage loan, including the initial loan amount, interest rate and initial monthly payment. This section also includes important information indicating if your interest rate can rise and if your loan has a prepayment penalty.
Account Information — Most lenders require you to pay in advance for some items that will be due after closing. These prepaid items generally include homeowner’s insurance premiums and property taxes.
Closing Cost Details — Your closing costs include Loan Costs and Other Costs. Loan costs are divided into three categories:
1. Origination charges are fees charged by your lender for preparing and submitting your completed loan application and underwriting your loan. The Origination Charges can include an application fee, an underwriting fee and an origination charge or points. One point equals one percent (1%) of your mortgage amount.
2. Services You Cannot Shop For lists the fees for those settlement services for which the lender will select the person or entity that will provide those services. These services typically include appraisals and credit reports for example.
3. Services You Can Shop For lists the fees for those settlement services that you may shop for and choose the service provider. These services may include the company that issues title insurance, conducts a survey, or performs a pest inspection.
Other Costs include:
a) Taxes and government fees such as recording fees and taxes and transfer taxes;
b) Prepaid such as homeowner’s insurance premiums for the first year of your loan term, prepaid interest and property taxes; and
c) Initial escrow payments at closing, which generally include two (2) months of homeowner’s insurance premiums and property taxes.
Read the Loan Estimate very carefully and go over the list of fees with your loan officer to make sure that you have a clear understanding of what are you paying and why.
The Loan Estimate comprise of certain disclosures that enable one the go through the total cost of Mortgage Loan in Kolkata under the terms of particular mortgage loan. These disclosures reflect the most significant characteristics of your mortgage loan:
a. the annual percentage rate (APR)
b. the payment amount
c. the total interest percentage (TIP).
· The APR is not the interest rate for which you applied. At Riddhi Siddhi Multi Services, we understand the importance of APR as it gives the true cost of borrowing after all of the finance charges with the Mortgage Loan are taken in consideration.
· The proposed payment amount shows the dollar amount of your payments and their frequency.
· The TIP is the total amount of interest that you will pay over the loan term as a percentage of your loan amount.