Real Investment will work very hard to meet closing deadlines. However, there are factors that we cannot control. Please note that the closing cannot be officially scheduled until the loan reaches clear to close status. Even after that point, unexpected delays may occur if the seller's end is not ready. Prior to clear to close, the loan officer can tell you your loan status and provide estimates of closing time frames. However, it is good to leave some room for margin and to have a contingency plan ready in the event of a closing delay.

Prequalification is the first step in the application which means providing the requested information either verbally or through the online application. The loan officer uses this information to evaluate what programs and how much you qualify for. The second step in the application process is to provide documentation to back the information in the application. This allows the loan officer and in some cases an underwriter to more accurately evaluate your application. You can submit a prequalification letter with an offer, but some sellers will require a preapproval letter because it carries more weight.

A seller concession is a monetary contribution given by the seller to a potential buyer to use towards their closing expenses and prepaid items. The money comes from the proceeds of the purchase.

Example - If a seller is trying to sell their home for $100,000, they might be willing to structure the purchase agreement at a purchase price of $103,000 with $3,000 in seller concessions. The net price to the seller is $100,000 ($103,000 - $3,000 = $100,000) In order for this transaction to work, the appraisal value would need to be $103,000. If it comes in lower, you will need to renegotiate the terms of the purchase agreement.

In Michigan, owner's title insurance and transfer taxes are customarily paid by the seller. You will want to make sure the purchase agreement stipulates that the seller is paying these items, unless the buyer agrees to pay as part of the negotiation process.

The cash to close provided on the Purchase Worksheet and Refinance Worksheet are typically the closest to the actual cash to close required at closing.

Pros - Insures that money is being saved to pay taxes and insurance, payments are automatically made by servicer

Cons - More flexibility with insurance paymetn terms, less control (i.e billing errors, tax disputes), money held in reserves could be utilized elsewhere, when there are multiple tax parcels, the escrow holder may miss a parcel (i.e NEZ properties)

If you waive escrow, then you do not need to make monthly payments for insurance. You need to be prepared to pay the second year's annual premium when it comes due a year after your loan closing.

If you do not waive escrow, the monthly payment for insurance is included in your monthly loan payment. The insurance escrow is built up in the escrow to cover the next year's annual premium when it is due.

Closing costs are any item or fee paid to the various parties involved in the transaction: title agents (title insurance, settlement, courier/notary fee), lawyers, mortgage company (processing fee, origination fee, points, etc) and government fees (recording and transfer tax). These are one time items due at the time

Prepaid items are your first payment on recurring charges, such as mortgage interest, home owners insurance and property taxes.

The primary credit score used for mortgages is the FICO score, which stands for Fair, Isaac & Company.

FICO® scores are grouped into five weighted categories:

• Payment history (35%)

• Amounts owed (30%)

• Length of credit history (15%)

• New credit (10%)

• Credit mix (10%