Closing and Beyond

Nations Choice Mortgage wants to help our customers better understand some of the common questions that may arise when choosing a Mortgage Lender. Please review our lists of Frequently Asked Questions for information about the Nation’s leading mortgage lender.








Who services the Loan?
What happens at the loan closing appointment?
Can I select my own closing agent (or attorney) and title insurance company?
Can I get advanced copies of the documents I will be signing at closing?
Who will be at the closing?
I won't be able to attend the closing. What other options are there?
Can I make my monthly payments with an automated debit from my checking account?
If I apply, where will the closing take place?
How do I lock my rate?
What is a subordination agreement?
Can I close my loan in the name of a Trust?
Can I close my loan in the name of an LLC?
How soon after I sign loan documents will my loan close?
If I am receiving cash out at the end of the transaction, how will I receive my proceeds?
If my loan is closing around the first of the month, should I still make my payment to my current lender?
What happens to my loan after it closes?
Can I make a bi-weekly payment?

NationsChoice Mortgage is a direct lender, also known as a mortgage banker. As such, we make loans with our own funds and close the loans in our name. After the loan is closed, it is sold to a secondary market investor, freeing up the funds for additional lending. Loans sold into the secondary market may be sold "servicing-retained" or "servicing-released" referring to whether the rights to service the mortgage are retained by us or released to the secondary market investor at the time of sale. Our decision to retain or release the servicing rights depends on a number of factors, the most important being which method allows us to offer the lowest rates and points to our customers.

You will be notified at the time you sign your loan documents regarding the servicing of your loan and be given instructions on where to make your mortgage payment. We sell loans servicing-released to only the largest mortgage investors in the country and are confident that your loan will be properly serviced whether we sell it servicing-retained or servicing-released.

To ensure there are no surprises at closing, your Loan Advisor will review with you an estimated closing statement prior to your scheduled signing appointment regarding your final fees, loan amount, first payment date, etc.

On a purchase transaction, the closing will take place at the office of your closing agent, attorney or title company. On a refinance transaction, a licensed notary specializing in mortgage documents will be sent to the location of your choice. You will be reviewing and signing several loan documents. The most important documents include:

Note: This is the document you sign to agree to repay your mortgage loan. The Note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments.

Mortgage or Deed of Trust: This document pledges your property to the lender as security for repayment of the debt. The Mortgage restates the basic information contained in the note, as well as details the responsibilities of the borrower.

Truth-in-Lending Statement (TIL): This document provides a full disclosure of the terms and conditions of your mortgage, including the annual percentage rate (APR) and other fees.

HUD-1 Settlement Statement: This document provides an itemized listing of the final fees charged in connection with your loan.

If your loan is a refinance of a primary residence, Federal Law requires that you have three days to decide that you want a new mortgage after you sign the final documents. This means that the loan funds will not be disbursed until three days have passed (exluding Sundays and Federal Holidays). The closing agent will provide more details at the closing.

By law, you have the right to select your own provider for these services. Certain providers used regularly by us have agreed to a guaranteed fee schedule, as shown on our website. If you wish to use a different provider and agree to pay the fee charged by them, we will be happy to work with them.

The most important documents you will sign at closing are the note and mortgage, sometimes called the deed of trust. Unless there are special circumstances, these documents are usually prepared one to two days before your closing. Other documents are prepared by the closing agent the day before or the day of your closing. If you would like copies of the completed documents to be sent to you after they are prepared, please contact your Loan Advisor.

The closing agent acts as our agent and will represent us at the closing. However, your personal Loan Advisor will contact you prior to closing to talk about your final documents and to provide a final breakdown of your closing fees. If you have any questions that the closing agent can't answer during the closing, ask them to contact your Loan Advisor by phone and we'll get you the answers you need - before the closing is over!

If you won't be able to attend the loan closing, contact your Loan Advisor to discuss other options. If someone you trust is able to attend on your behalf, you can execute a Power of Attorney so that this person can sign documents on your behalf. In other cases, we're able to have you sign the documents in advance. We're sure to have a solution that will work in your circumstances.

All of our servicers allow you to set up a direct debit to make your monthly payment. Upon receiving notification regarding the servicer for your loan, contact the toll-free number provided to set up your direct debit.

If NationsChoice has retained the servicing on your loan, simply contact our Loan Servicing Department at 888-475-7849 and ask for an authorization form for automatic payment (ACH payment).

In the case of a refinance, wherever you like. Most choose the convenience of their home or office, while others choose to drive to the local title company. Purchase transactions are typically controlled by the sellers’ title company and you can expect to sign at that title company.

We'll deliver our loan documents and wire transfer your loan funds to the closing agent or attorney prior to closing so that they'll have plenty of time to prepare for your closing.

On a refinance your loan lock is automatically requested for 30 days upon online approval and submission of the application fee. If you wish to float please contact your Loan Advisor within 24 hours. On purchases, your rate lock will not be requested until you communicate your desire to do so, as we need to incorporate the close of escrow date on your purchase contract.

A subordination agreement is a document prepared by a second mortgage lender agreeing to remain in second position when a first mortgage is refinanced. Without such an agreement, the second mortgage holder would move into a first lien position when the existing first mortgage was paid off. The second mortgage lender usually charges a fee to process the subordination agreement, which is incurred by the borrower. Additionally, this process often increases the amount of time necessary to process a first mortgage refinance transaction, so an applicant wishing to subordinate a second mortgage may want to request a 45 day lock to ensure sufficient time to obtain the subordination agreement.

Loans may not be closed in the name of a Trust. The settlement agent or attorney will prepare a grant deed removing the property from the trust prior to recording your new loan.

Loans may not be closed in the name of an LLC. If the title of your home is vested in an LLC, the title must be changed prior to submitting a loan application.

On a purchase transaction or a refinance of a second home or rental property, we can typically close within two days (one day to review the docs and one day to fund the loan, and record). On a refinance of a primary residence, there is a three-day rescission period that must pass before your loan can fund.

The closing agent (or attorney) will issue a check and mail it to you. You can also arrange for the funds to be wired directly into your bank account if you desire.

We always recommend that you make your payment to avoid any late charges.

NationsChoice Mortgage is a direct lender, also known as a mortgage banker. As such, we make loans with our own funds and close the loans in our name. After the loan is closed, it is sold to a secondary market investor, freeing up the funds for additional lending. Loans sold into the secondary market may be sold “servicing-retained” or “servicing-released” referring to whether the rights to service the mortgage are retained by us or released to the secondary market investor at the time of sale. Our decision to retain or release the servicing rights depends on a number of factors, the most important being which method allows us to offer the lowest rates and points to our customers.

You will be notified at the time you sign your loan documents regarding the servicing of your loan and be given instructions on where to make your mortgage payment. We sell loans servicing-released to only the largest mortgage investors in the country and are confident that your loan will be properly serviced whether we sell it servicing-retained or servicing-released.

Most of our servicers allow you to set up bi-weekly payments. However, you should seriously weigh the merits of this program before setting it up. A bi-weekly payment program pays off the mortgage early by making 13 payments each year (52 weeks in a year divided by 2 equals 26 half-payments or 13 full payments). By simply paying an extra 1/12 of a payment each month, or making one additional payment each year, you will pay your mortgage off faster and avoid any administration fees associated with the biweekly payment program.

Instant Mortgage Rate Help

Loan Amount: How much do you want to borrow? Example: 150,000 (You can borrow up to 100% of the purchase price of your home. You will find better interest rates at 95%, 90%, and 80% progressively.)

Property Value: This is the purchase price of your property or your best estimate of the appraised value of the property. Example: 175,000.

Loan Type: Selecting Refinance WITH CASH OUT may increase your rate. If you want some extra cash to pay the closing costs on your new loan, this would NOT be considered receiving extra cash.

Escrow/Impounds: Allows you to pay 1/12 of your annual property taxes and homeowners insurance with your mortgage payment each month. Escrowing your taxes and insurance will lower your points by .25%

Property State: Specify the State where the property is located

Property County: Specify the County where the property is located


Todays Rates: These rates are based on the following criteria..

Instant Mortgage Rates:


Loan Amount
Property Value
Loan Type
Loan Purpose  
Property Type
State
City
Zip
 

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