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In part one of this two-part blog series, we went over some basics on the cover letter that you may or may not include as part of an offer on a new home. Cover offers serve a few purposes, from stating some of your homeownership goals to simply introducing yourself to the seller, and they might play a significant role in helping your offer stand out from others – if they’re crafted carefully, that is.

At Primary Residential Mortgage, we’re happy to help with a wide variety of mortgage services, from offering the best mortgage rates in town to assistance with mortgage checklist items, the types of loans available to you, and much more. While part one of our series went over the types of sellers out there and how a cover letter might impact them, today’s part two will dig into a few specific needs you might already be aware of with a given seller, plus how you should tailor your cover letter to speak directly to these needs.

Speedy Closing Need

One of the most common seller needs out there, especially in today’s market, is a need to close the deal quickly. Perhaps a seller has another home they need the cash to close their purchase on, or maybe they’re moving to a new location for a job that requires a specific start date.

In these situations, you and your agent will often know about this need well in advance. Your cover letter, then, should include specifics on how you can accommodate that need: Your ability to pay cash or provide proof of mortgage approval, for one, plus your general ability to close quickly by limiting timelines for things like appraisal or inspection.

Choosing Closing Date

In other situations, timing may be a concern for the seller in slightly different ways. They might need more time in some cases, such as if they’re still on the market for their own new home. As long as it’s no skin off your back, we recommend notifying these sellers in your cover letter that you are completely fine with them setting the closing date, plus working with them as-needed. This may separate you from other offers that are not so willing.

Previous Issues

Finally, you may run into sellers and agents who have already been through some bad experiences with this property. Maybe a previous contract fell through, or perhaps a prior buyer wasn’t pre-approved and had to back out. In these cases, sellers are often primarily looking for a buyer they’re confident won’t run into any of these issues – so emphasizing that you’re fully approved (or can pay cash) will go a long way.

For more on why and how to write cover letters for a home offer, or to learn about any of our home loan services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.

There are several elements that may go into an offer you make on a home, and one of these that’s generally optional is known as a cover letter. Serving as a way to both help the seller focus on the details of your offer plus personalize it in a few special ways, cover letters may not always be needed, but often provide some benefits for the buyers and their agents crafting them.

At Primary Residential Mortgage, we’re here to help our clients with numerous home loan types and fantastic mortgage rates, and we also regularly assist clients in making the best possible offer – a process that sometimes includes a cover letter. What should you know about home sellers and cover letters, and how can you go about personalizing a cover letter to make it as impactful as possible? This two-part blog series will go into this and other factors.

Don’t Make Assumptions

For some reason, there are certain buyers or even real estate agents out there who tend to make too many assumptions about the sellers they’re dealing with. They assume that all sellers will automatically accept the highest offer price no matter what, and that all sellers will want to close immediately – that is, there tends to be an assumption that all sellers will simply look at things from a data-centric point of view, with little consideration for anything else.

Simply put, while this is sometimes true, it isn’t always. Some sellers will have other motivations in addition to the raw dollars and cents. And in both these situations, there are ways you can utilize a cover letter to your benefit. Our next couple sections will go over the two broad “types” of sellers.

Fact-Based Sellers

These are the sellers we referred to above, the sort who are focused primarily or exclusively on the numbers involved. They want the best possible value for their home no matter what, and will often be focused on other details like a fast closing.

For these sellers, the details of your offer are what matter. You may utilize a cover letter to spell these out in simple terms, a way to show the seller you respect their time.

People-Based Sellers

These sellers, on the other hand, are considering factors beyond raw price. While the offer number will certainly play some role for these sellers, they will also consider factors like the plans of the buyers, what the buyers plan to do with their home, or a few similar themes. They will often care about the qualities of the buyers as people, and will want to feel like they can trust them to be straightforward during the offer and negotiation process. For these sellers, infusing some personal elements into your cover letter is often a great move.

For more on cover letters on home offers, or to learn about any of our mortgage rates or home loan services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.

In part one of this two-part blog series, we went over some of the basics on the mortgage rate lock, a vital tool many borrowers take advantage of. Allowing you to lock in your rate at a current point when it’s favorable, a mortgage rate lock helps buyers who need some security within their borrowing situation.

At Primary Residential Mortgage, we’re here to help with numerous mortgage loan and mortgage rate needs, including explaining and obtaining mortgage rate locks for clients who may be in need of them. While part one of our series went over the basic information on how they work, today’s part two will hit on how a rate lock is actually done, plus the proper timing for it and what the related costs are here.

How It’s Done

Here’s the basic process you should take for obtaining a mortgage rate lock:

• Inquire about general time frames and when you’re eligible for a rate lock (more on this in a bit).
• Ask about fees or costs, both for locking the rate and for any potential extensions of the lock that might be needed. Also ask about whether funds are refundable if you cancel the application.
• Monitor mortgage rates on the market and consult with your real estate agent and loan officer for their thoughts on the direction it might go in.
• Usually, you’ll lock in your rate at a point where rates are rising – if they’re still dropping, it’s better to wait until they’ve hit the floor before locking.
• Once you’ve locked in, review your new loan estimate, which should include specifics about your rate lock.

Timing Considerations

Generally speaking, rate locks will be acquired for mortgage borrowers in between the process of getting pre-approved and submitting your actual mortgage application. During this time, you should keep an eye on the mortgage rates on the market while keeping in touch with your lender and real estate agent. In some cases, you may want to lock in your rate as soon as it’s offered if it’s on the rise; if rates are dropping, you may not ever use one at all.

Rate Lock Costs

The cost of a rate lock will depend completely on the lender you’re working with. Some charge separate fees for a rate lock, either expressed in a dollar amount or an actual percentage of the total loan value. Other lenders will not charge a direct fee for a rate lock, but the rate you’re offered may include a built-in fee in this case. Be sure to inquire about this area.

For more on mortgage rate locks, or to learn about any of our mortgage rates or home loan services, speak to the staff at Primary Residential Mortgage in Shoreline today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.

All homebuyers want to get the lowest possible interest rates on their mortgage, but rates fluctuate incredibly often – even by the hour sometimes. For this reason, many borrowers consider what’s known as a mortgage rate lock for a rate they’re comfortable with as they approach closing.

At Primary Residential Mortgage, we’re happy to offer a variety of mortgage loans and mortgage rates to all our clients, and we’ve assisted many with mortgage rate lock scenarios. What is a mortgage rate lock, and why might you consider one for your situation? This two-part blog series will go over everything you need to know.

Rate Lock Basics

As the name suggests, a mortgage rate lock refers to a guarantee from your lender that, for an agreed-upon period of time, the current interest rate you’ve been pre-approved at will not rise. The goal here is to protect you from the fluctuations of the market during the period where you’re closing – this is a time where your lender will have to underwrite your loan and process it, and this often takes several weeks, during which mortgage rates on the market may go up or down.

But if you lock the rate in before this, you get to keep the lower rate regardless. There are also what are known as “float down” options that allow you to still capitalize on a situation where mortgage rates drop during this period, but not to be punished if they rise.

Common Scenarios

Once you’ve locked in a mortgage rate, here’s how things will proceed depending on what happens with mortgage rates during your closing period:

• Rates go up: If mortgage rates rise during your closing period, you are protected as long as your loan is still in process, and you will pay the lower rate.
• Rates go down: If you have a float-down option, which we mentioned above, you can capitalize on this to get an even lower rate. If you do not, however, you will have to pay the rate you locked in at.
• Rates stay the same: If rates stay the same, there will be no issue and your payments will be as expected.

Why It’s Sensible

The primary reason borrowers go with a rate lock is peace of mind and easier budgeting. It’s very hard or even nearly impossible to predict how mortgage rates will vary during your closing period, so going without a rate lock is a risk – if rates go way up, you may have lost your bet, but if rates go down, you may have won it in a big way.

Many homebuyers, especially first-timers, don’t want this level of risk. Rather, paying a small fee for a rate lock is preferable for many, as it helps them know exactly what to expect and allows for better budget preparation.

For more on mortgage rate locks, or to learn about any of our mortgage rates or home loan services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.

In part one of this two-part blog series, we went over some basics on a mortgage closing disclosure. This document, which is sent in the days ahead of your closing day and lays out the basic terms of the loan, is sent for a few important reasons, and knowing what it’s for and what to do with it is important during any mortgage application or homebuying situation.

At Primary Residential Mortgage, we’re happy to help with a huge range of home loan programs and services, including assistance with numerous details around closing time – such as the closing disclosure. Why does this document matter within the process, and what should you do as a buyer once you receive it? Here’s a basic primer to finalize our series.

Why Closing Disclosure Matters

As we noted in part one and then again above, the primary purpose of the closing disclosure is to ensure that all parties are aware of the details of the loan, especially the buyer. It allows you to double-check every detail and make sure there aren’t any last-minute surprises facing you. You’ll generally be given a three-day period in which to go over the disclosure and raise an issue if there are any problems.

If these issues aren’t spotted until closing, this can create all sorts of problems. But if you have advanced notice, many of these can be avoided.

How to Proceed

If you do happen to find an error of any kind on the closing disclosure, it’s important to notify your lender right away. Even if this error is very small, such as a simple typo on a name, you never know the impact this may have down the line in an industry that’s very detail-focused.

If all the details on the closing disclosure are correct, which will be the case the vast majority of the time, you should sign it as soon as possible and return it to the lender. Everyone who is on the title must sign the closing disclosure, even if certain of those individuals are liable for the loan. Once you have signed, your signature is acknowledgement that the disclosure is accurate. In today’s day and age, many closing disclosures are signed electronically.

Next Steps

Once the closing disclosure has been verified and signed, there will generally be three days between this and the actual closing meeting. You should be sure to bring a copy of the closing disclosure to this meeting if it’s being done in person, just in case. But as long as there were no issues with the disclosure itself, this meeting should go smoothly and conclude with the home changing ownership.

For more on the closing disclosure, or to learn about any of our mortgage rates or home loan programs, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.

There are several documents or items that might be important during your mortgage application, home search and eventual home purchase, and one of these is known as the closing disclosure. Sent to mortgage borrowers by their lender near the closing date on a mortgage, the closing disclosure is a way of allowing borrowers to verify and double-check important information, plus holds some other purposes as well.

At Primary Residential Mortgage, we’re happy to help our clients with a wide variety of areas for any of our home loans offered, which range from conventional loans to programs like FHA loans, VA loans and many others. In this two-part blog series, we’ll go over everything you might need to know about a closing disclosure – why it’s sent, its typical length and features, the timing for a standard closing disclosure and several other factors to be aware of as you approach closing day.

Closing Disclosure Basics and Purpose

A closing disclosure is a relatively simple document that’s meant to lay out all the terms of your loan in a simple, straightforward way. It is prepared by your lender and will be sent in advance of your closing day itself.

Really, the closing disclosure is meant as a way of allowing borrowers to check all their work. You’ll confirm every detail of the arrangement is correct, from items like your credit score and monthly income down to the specifics of the loan repayment process and more.

Typical Disclosure Length and Features

In most standard mortgage situations, the closing disclosure will be five pages in length. It will cover the following areas:

• Basic loan terms, such as interest rate, loan repayment period and more
• Projected monthly payments across the life of the loan
• All closing costs, plus whether these are paid separately or rolled into the mortgage amount
• A transaction summary
• Any further information required about the loan

Closing disclosures will be made on standardized forms, with copies generally made for the lender and possibly other parties as well.

Closing Disclosure Timing

By law, lenders are required to send their borrowers a closing disclosure no later than three days before closing day. This is so that borrowers have enough time to check the entire disclosure for any errors.

If you do find mistakes on the closing disclosure, you should immediately contact your lender to reduce any delays in closing, which can occasionally be costly. In some cases, borrowers will compare the details of their closing disclosure with their final loan estimate, as this is a simple way to spot inconsistencies.

For more on the closing disclosure in a mortgage situation, or to learn about any of our mortgage loan programs or services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.