Legal Question in Real Estate Law in New York
Approved for a loan-Closing taking very long
I was approved for a mortage loan for $500,000 (CityWide Mortage) the 1st 424,000 at 9.025% and remaining 106,000 at 10.8. No money down. I told the broker (First Equity Home Loans, NJ) the rate is high. He said that's because I'm not putting any money down, but I can then refinance-he will do it also.
The house was appraised at 570,00 & my brother-in-law is letting us have it for 500,000.
Should I go ahead and accept this rate? The appraisal was done in April 2006. The broker sent the contact to me on August 18, 2006. I signed and return via fax. It's been a week and he has not called or answer my emails. We've waited so long to get this over with-why is he stalling?
Should we continue to wait and see. My brother-in-law said my broker has not sent their lawyer the contract we signed.
Does it usually take this long to close a mortage loan?
Thank you.
1 Answer from Attorneys
Re: Approved for a loan-Closing taking very long
The interest rate a prospective Mortagee offers, is usually based upon several factors, that include but are not limited to the borrower's credit score, financials, location and value of the proposed purchase, other assets, property, & liabilities, etc..
Therefore, it is impossible for anyone to tell you whether you are getting the best rate possible for your transaction, without reviewing all of your financial information and other information.
However, it IS often the case that a 80/20 LTV loan ratio, or a 100% mortgage financing option, for the purchase of property, will be at a higher interest rate than another mortage option.
In addition, the time it takes to Close on these kinds of mortgage purchases, like other kinds, tend to be dependent upon how quickly the borrower's application with supporting docs is completed.
Also, recent federal gov changes in banking and lending laws, regs and oversite, along with the inexperience of many of the processors, have created a noticeable increase in process time.
Good luck,
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