Loan Closing and Next Steps

This is a document required by lenders that provides final details about your mortgage. It needs to include your loan terms, projected monthly payments, and how much you'll pay in fees and other closing costs. Here's a blog that can tell you more about closing disclosures.

Depending on state laws, you do not need to have a lawyer present, but you may certainly choose to have one present if you desire. You can also choose to have an attorney review your documents to make sure they are in order.

These are fees the buyer may owe to cover costs such as homeowner's insurance, pre-rated interest and property tax. These are collected bye the lender to ensure your taxes and insurance are paid on time.

These are the fees paid at the time of the closing of the home loan and can include, but are not limited to: appraisal fee, title insurance, closing transaction fee, loan origination fee, discount points, recording fee, underwriting fee and processing fee. You can expect closing costs to be approximately between 3% and 5% of the home's purchase price.  Here's a blog that can tell you more. 

Click here for a calculator that determines your mortgage closing costs for a given set of loan terms. The calculator lumps settlement charges into two categories: origination charges and other settlement services.

The fee your lender charges you to process your loan application.

The amount a home inspector charges to inspect your home and determine its condition.

All the administrative costs associated with your lender.

All the costs associated with the underwriter(s) involved in reviewing and verifying your loan request.

The fee charged by an appraiser to review and confirm the market value of the home you wish to purchase.

The fee for preparing the documents involved with processing your loan.

The fee the title company charges you for researching the property records on the home and preparing a deed.

In some states, a survey company must verify the property lines and shared fences on the property.

To properly get an estimate on what your mortgage payment, you will need to know the purchase price, down payment, the term of the loan and the interest rate. If you have all these variables, this tool can help determine approximately what your monthly mortgage payments will be.

An escrow account is managed by the lender on behalf of the borrower and is set up for setting aside a percentage of the yearly taxes at loan closing, as well as additional money collected monthly with the mortgage payment, which is used to pay tax bills regularly. The account needs to be "front loaded" at closing, usually with two months of estimated property taxes, mortgage insurance payments and home owners insurance payments. Here's a blog that tells more about escrow accounts.

Yes! Paying your loan off early can save money on interest, potentially thousands of dollars if you knock off a just a few years. There are a couple of ways you can go about doing it. The easiest is to just make extra payments outside of your normal monthly payments, either by increasing the monthly amount or making an extra payment per year. Make sure all extra payments are applied totally toward principal. Check with your lender to make the route you choose doesn't result in extra fees.  The second way is to refinance your loan to a shorter term. Loans with shorter terms usually have lower interest rates, so this can save you money on interest as well as paying of your house sooner. 

Before you start decorating or hosting any parties, here's some things you should do: 

• Make copies: The documents you signed at closing are legally binding. Make copies of each page for your files.
• Change your locks. Chances are, you don’t know everyone who had access to your home while it was on the market. Re-keying all of the locks in your new house on the day you move in will help keep you, your family, and your belongings secure.
• Cover your windows. During the move-in process, you’re likely to have plenty of boxes laying around. If the home doesn’t already have window coverings, you can avoid being a target for burglars by covering your windows with blinds, curtains, or even paper as a temporary fix.
• Greet your neighbors. Become comfortable in your new surroundings by meeting your immediate neighbors, at the very least. Exchange information in case of any future emergencies.
• Add to your speed dial list. You’ll want to have the phone numbers for your insurance company, warranty company, and locksmith handy at all times...just in case. If you ever happen to be in a situation where you might need to call one of these, you probably won’t be in the state of mind to search around for information.

 

You can refinance anytime after you close on your loan, but you should make sure the costs associated with refinancing justifies going through with it. Some reasons why you may want to refinance quickly after closing include:

• Interest rates suddenly dropped drastically
• You need a lower monthly payment due to unforeseen circumstances
• Your credit score significantly increased
• You no longer want an adjustable rate mortgage
• You want to tap into your equity with a cash-out refinance

Yes! You make payments on your NASB loan quickly and easily, anywhere you have internet access. We have two ways you can pay online, by making a secure payment from a non-NASB account (transaction fees may apply) or by transfering a payment from a NASB checking or savings account via Online Banking. Click here for more information.

NASB will disburse your funds to the title company or closing agent anytime during the 4th business day after loan signing, but will not fund on a Saturday, Sunday, or federal holiday. The title company or closing agent will then disburse to your account. In most cases, you should allow up until business day after disbursement for the funds to show in your account.

Example: If your loan closed on a Friday, NASB would disburse funds on Wednesday, but in most cases you may not receive funds until Thursday.

NASB makes every effort to provide you with an outstanding closing experience. Our funding team reviews every document that is executed at closing prior to disbursement and may request corrections or re-execution of documents to meet quality standards. If you receive a request and have any questions, please feel free to call 816-508-2318 for assistance.

For a primary residence refinance, the title company should wire the funds to your current mortgage company or companies the 4th business day after you sign loan documents. Your funds should be disbursed any time during the 4th business day, but will not fund on a Saturday, Sunday or federal holiday. For refinances of a second home or investment property, funds should be disbursed any time during the 1st business day after signing loan documents, but not on Saturday, Sunday or a federal holiday.

NOTE: Some banks do not accept wired funds for payoffs on accounts and funds may need to be mailed to the bank.

If you are using one of our preferred vendors or title companies, checks to be used for payoff should be mailed to you directly via FedEx or UPS arriving 2-3 days after disbursement. The check(s) will be made payable to the creditor and you will then mail them directly to each creditor. If you choose your own settlement agent, please contact them to see how they will disburse those funds. Please do not try to pay online with the ABA and account number from the check or take the check into a location (ex: Lowe’s or Best Buy) to pay. These checks must be mailed to the address the creditor accepts payment from.

A servicer can take up to 30 days to refund your escrow account balance. For the status on your escrow refund please contact your current servicer on the paid off loan.

NASB may not service your mortgage. If you have any questions regarding this, please contact your loan consultant.

All loans are reviewed prior to your new servicer receiving it. Should there be any errors within the loan file, NASB may need to contact you for your assistance in obtaining what is needed for the new servicer.

You should make payments to your new servicer as directed in the welcome letter or other communication from the new servicer. Please verify the due date of the first payment due to the new servicer. The payment address will also be listed. If you have not yet received a welcome letter, your payment can be made to NASB using the payment coupon located at the bottom of the first payment letter you signed at closing. If you did not receive copies of the documentation you signed at closing, please contact the settlement agent listed on page five of your closing disclosure.

If your loan is sold to another service provider, once you receive the welcome letter from your new servicer, you should contact that servicer to set up auto draft payments. If instead, NASB will be servicing your loan, you may have already signed an automatic payment authorization at closing. You will receive correspondence from our customer service team via email, phone or mailed letter within 5 business days of your loan disbursement. If you have not been contacted by the 10th business day, please call 1-800-677-6272, select option 5, then option 2 and one of our team members will be happy to assist you.

If your taxes were due within 60 days of your closing/signing date you should receive a tax bill in the mail. Please contact the settlement agent that closed your loan to ensure the funds collected at closing were sent to your local tax assessor. If the due date for the tax payment is outside of 60 days from your closing/signing date and you set up an escrow account with your new loan, your new servicer should make the tax payment for you.

No. In many cases, you will receive your welcome letter from the new servicer prior to the final mortgage payment due to NASB. If you send us a payment due to the new servicer you do not need to stop payment as we will forward the payment to the new servicer on your behalf. Future payments can be made as indicated in your welcome letter.

Click here for the steps to sign up to receive your mortgage statements digitally.