Answers to your questions FAQ Index | General | Mortgage Tools | Rates and Costs | Approval | Closing   Does my customer have to attend closing? What are their options?     It is not required that your customer attend the closing, if they have given an acceptable power of attorney or taken the necessary steps to complete a mail away closing. One of our personal mortgage counselors can help each customer determine their options based on their needs.   Back to FAQ index   How does it benefit my customer to let you select the closing agent?     By choosing our closing agent, we can guarantee a closing date on any conventional loan. If we do not meet this date, we will lower the interest rate by 1/8th of a percent for the life of the loan.* Not only that, by using our network, we can assure each borrower that they will receive a competitive price for the closing agent's services and the superior service that they deserve. * Approved, conventional, purchase loans using our preferred closing agent only.   Back to FAQ index   Where does my customer go to close the loan?     In most cases, they will go to a local Title Company or attorney's office for the closing. If your customer let us select the closing agent for them, we will work with our network and try to find an agent within 15 minutes of the property. If a different location is preferred (e.g. office, home, bank), our preferred closing agents will work with each borrower to try to accomodate their needs. The closing agent will have all mortgage documents needed for closing. Your customer may need to bring money, picture identification, etc. The closing agent will let your customer know what to bring.   Back to FAQ index   Can my customer bring a personal check to the closing?     Your customer will need a cashier's check or certified check for closing. Since this is such a large transaction, a cashier's check provides verification that the funds are actually available.   Back to FAQ index   What is title insurance and why is it required?     Title insurance protects the lender or borrower against losses from disputes over the title of a property. It ensures against the possibility that there may be an unknown lien or any discrepancies in ownership. Your customer may want to consider purchasing a separate buyer's policy to protect their interests..   Back to FAQ index   How much title insurance does my customer need?     The amount of title insurance needed is based on the value of the home and the amount of the mortgage. Lenders are covered for the full value of the mortgage. This policy is required and will vary from state to state. There is a one-time fee for the policy that is paid at closing. In addition, borrowers can obtain a separate owner's insurance policy to cover the full value of the home. However, this additional policy is not required.   Back to FAQ index   How much homeowner's insurance is required?     A homeowner's insurance policy must cover the cost to rebuild the home. The insured amount may be higher or lower than the actual purchase price as long as it meets the program requirements. The insurance company can give your customer an actual quote based on specific information about the property.   Back to FAQ index   How does my customer know if they need flood insurance?     We will perform a flood hazard determination for each property. If the home is located in a Special Flood Hazard Area, federal law requires the borrower to purchase flood insurance. Most standard homeowner's insurance policies do not cover loss due to flood. A borrower can obtain flood insurance coverage even if not required to do so by the lender.   Back to FAQ index   How are property tax bills paid?     It depends on the loan program and state requirements. Generally, if the monthly mortgage payment includes money for property taxes, these funds are held in escrow by the lender and the lender pays the property taxes as they become due. Generally, if the payment does not include property taxes, the homeowner is responsible for paying them by the due date mandated by each state.   Back to FAQ index   What type of inspections does my customer need before closing?     Certain inspections may be required under each particular loan program. However, depending on the home and the location, there are a variety of inspections each borrower may want to consider before closing on a new home even if they are not required under their program, such as:     Home Inspections     Termite Inspection     Water Test (for well water)     Septic Tank Inspection     Radon Test   Back to FAQ index