| Add
Home Equity Loans Wizard to your Favorites
Know what to expect at
Closing
Closing on your loan can be a very hectic
time. Take the necessary steps to ensure that all your documents
are correct before you sign them. Most people read their loan
documents in the closing meeting just before they are signed.
This is not recommended because of the added pressure of the
situation.
It is best to get a copy of the documents before
the meeting, and give yourself the time you need to review
them properly. In fact, on my first closing, the lawyer told
me that I could not read the documents during closing! I almost
walked out, but he finally conceded to let me take the time
to read them. Be prepared ahead of time to avoid such a sticky
situation.
If there are any provisions in the loan contract that you
do not like or if you have any questions, be sure to address
them before you sign. It is better to negotiate or turn down
the loan than to agree with something you do not feel comfortable
with.
The thing to remember is that your home is on the line. A
lender is supposed to give you certain information in order
to comply with the federal Truth in Lending Act. You should
get this information either when you apply for the loan or
shortly thereafter.
Under the Act the must provide you with information on the
following:
- The annual percentage rate (APR)
- points
- closing costs
- the amount being borrowed
- the amount owed
- interest paid
- special terms (i.e. variable interest rate)
- balloon payments
- pre-payment penalties
Once you have gotten the loan, make sure you keep track of
your documents and records. You might need them if there are
problems later in the loan term. You might also forget some
very valuable information that could save you time and money.
So be sure to keep a file in a safe place, and if possible,
even keep a copy off-site somewhere other than your home -in
case of fire, theft, etc.
Home
Loan Resources Index
Back
to Home Equity Loans Application
|
