 |
|
|
|
|
|
Financing process.
A loan application form request information about the poor over special status. Once the applications completed the lender review the application, request a credit to help him determine if the prospective borrower to appear to me the lender's requirements.
The borrower may accept, reject, attempt to negotiate a financing terms with the lender. Assuming that an agreement is reached, the process begins. Processing involves growing up loan documents, preparing disclosure forms to die alone costs, ordering escrow and title documents. One of the loan package has been processed, the closing phase begins.
Closing the loan involves signing a loan papers and then transferring the property. After the title has been transferred in the escrow is closed, the loan servicing phase begins. Many lenders do their own servicing, while others pay independent mortgage companies to handle the paperwork.
Promissory notes. When money is borrowed to purchase real estate, the borrower agrees to repay the loan by signing a promissory note. Promissory note applies the terms of repayment and sets the due date. There are two types of promissory note: straight note and installment note.
Straight
note is frequent referred to as interest only note. Borrower agrees to pay the
interest, usually monthly, and to pay the entire principal in
the lump sum or the due
date. Installment note. Requires payments to includes both principal and interest. |