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Your real estate agent and First Home Mortgage Loan Officer will remind you what to bring, but the following is a common guide of documents and information that could be required to close on the loan and complete the transaction:
The borrower must provide proof of insurance on the home that is being secured for financing. It is recommended that your homeowner’s insurance coverage be at least the amount of your loan amount or the appraised value less the value of your land. The deductible amount is limited to $1,000 or 1% of the face value of the policy, whichever is greater.
A licensed exterminator must inspect the dwelling to determine that it’s free and clear of any active infestation or environment conducive to infestation. Any current or previous damage must be certified as being structurally sound.
Provide certification that the well water/septic meets local health authority requirements.
Settlement Service Provider-Title Company/Attorney
The Title Company/Attorney must provide First Home Mortgage with a survey, title binder and insured closing letter at least three business days prior to closing.
A certificate of occupancy, approved builder warranty and final inspection are required on all loans for newly constructed dwellings.
Borrowers must continue to make normal monthly mortgage payments during the processing of the application. Refinance loans have a three-day “right to cancel." Payoffs and funds being disbursed from a refinance agreement will be available on the fourth business day after closing.
FHA Loan Payoff
If you prepay your loan on a date other than the regular installment date, you may be assessed interest charges until the end of the month. Please notify your current lender at least thirty days prior to your closing date that you intend to pay-off your loan.
Power of Attorney
If you are unable to attend settlement and are using a Power of Attorney to close, we will require a Power of Attorney specific for this settlement transaction.
Inter-vivos Revocable Trust
If you are taking title (if allowed by the financing/program type) we must have the underwriter review this document to determine its acceptability.
Private Road/Shared Driveway
Provide a private road maintenance agreement signed by all property owners.
Again, check with your real estate agent or contact your First Home Mortgage Loan Officer to know exactly what documentation you are responsible for bringing to closing and what will be supplied by other parties.