The Closing – What to Expect A popular option for sellers in Wisconsin is to pre-sign your paperwork a few days in advance. You will meet with your title company maybe a day or two before the actual closing at a time that is convenient for you and sign all the documents that are required on the seller side. The big advantage of pre-signing is that it takes one variable (the seller side) out of the equation for the actual closing day, because your documents have been reviewed, approved and signed and you don't need to be present for the actual closing. If you pre-sign you know that all documents are signed and ready to go and you don't have to take the day off work to be at the actual closing. This option is convenient in particular when moving out of town - you can already be on your way and your agent will represent you at the closing. If you chose be there for the actual closing, the title company will usually have two separate rooms assigned for the seller and the buyer side. The buyer side usually takes significantly longer, up to an hour, because they have all the loan documents to sign. If you like you can meet your buyer in person, hand over the keys and any other information that might be beneficial for them. If you want to meet your buyer or not is really a very personal decision for you and also for the buyer; a lot of people are private and prefer to not meet at all. On the buyer side the lender will be present and the closer form the tile company. At this point funds have already been wired by the buyer (down payment) and the lender (balance of the purchase price) to the title company. Once the buyer has signed all the closing statements and financing paperwork (unless a cash deal) the title company will transfer title in their name, record the deed and wire the money from their trust account into your bank account which you have specified before. It can take 4-6 hours before the fund show up in your bank account, which could mean the next day, so don't get nervous when you don't see them right away. If you are not present for the actual closing the final documents with the buyers signatures will be mailed to you. At this point ownership has officially transferred, money has changed hands and it’s time to celebrate; your house has officially sold and you can move on to your next stage in the property ladder!

Final Walk-Through More of a formality than anything else, the final inspection takes place anywhere from a few days before closing to the day before; The buyer visits the property to verify that all is in working order, inspect any repairs that were agreed upon and everything is the same as when the buyer last viewed the property, and that there are no extra items left behind. Cancel Home Services & Utilities We will provide you with a list of useful numbers for you to contact for the termination of home services & utilities before closing day. Be Prepared We are ready to assist you should an unforeseen glitch pop up, even at this last stage. If something at the property breaks down, or some other minor issue arises – there is no need to worry! We have encountered these problems before so we know how to handle them efficiently and in a stress-free manor.

A fixed-rate loan locks in your interest rate for the entire loan term, which typically is 30 years (also called the amortization period). Most buyers choose a 30-year fixed-rate loan because they like the long-term predictability. Interest rates are typically a little higher on a loan that grantees a fixed interest rate for 30 years compared to a product that is only fixed for 5 years, but it gives buyers predictability and peace of mind.

Government-insured U.S. Department of Agriculture (USDA) loans do not require a down payment and may have lower mortgage insurance premiums. USDA loans require borrowers to meet certain household income limits for the area where they want to buy a home. The property must also be located in an eligible rural area, like parts of Ozaukee County.

A VA loan is guaranteed (to the lender) by the U.S. Department of Veterans Affairs (VA). VA loans are a benefit to veterans and offer a great option because they don’t require a down payment (as long as the sales price doesn’t exceed the appraised value) or mortgage insurance. Veterans and active members of the military should check their eligibility before applying for such a loan. VA loans get issued by many regular banks and lenders. While a VA loan can be a great option to a buyer, they are not very popular with some sellers, because they can take a little longer and include an additional inspection. Most counties around Milwaukee have also recently been added to a zone where the VA requires a termite inspection letter, which has to be provided and paid for by the seller!

FHA loans, which are federally insured by the Federal Housing Administration, require a down payment as low as 3.5 percent and tend to have looser guidelines. These loans may be a good option for borrowers with less cash and a lower credit score. Of course, lenders may have their own standards that require a higher credit score. FHA loans require upfront mortgage insurance and annual mortgage insurance (PMI) that you generally pay monthly over the course of the term. FHA loans are sometimes a good option, but not very popular with sellers, as they have additional requirements like an FHA appraisal and inspection to verify the condition of the home. Sometimes the FHA will make additional demands on the seller to improve the property - exterior paint and roofs are often the issue. Buyers should consider a low down payment conventional loan in comparison and see which one is a better fit.

A jumbo loan is a loan for an amount that exceeds the conforming loan limits for the county where the property is located. Because it doesn’t “conform” to the loan limit, a jumbo loan is by definition nonconforming. The current “conforming” (conventional) loan limit for a single-family (primary or second) home in Wisconsin is $453,100 and is set by Fannie Mae. When a mortgage goes beyond that amount (which equals a $566,000 purchase price with 20% down), it enters the category of a Jumbo Loan. Like other mortgages, Jumbo Loans come in the form of both Adjustable and Fixed Rates, which are often slightly higher than their conforming counterpart. The market for more expensive homes is inherently riskier because of the limited number of potential buyers. As a result, property values are subject to greater swings, requiring more conservative underwriting requirements. Because of this higher risk, the average Jumbo Loan borrower typically has a better credit history, more stable income, and higher reserves (cash on hand or other assets that can be accessed, even retirement accounts) than a Conforming Loan borrower.

FAQs Archive - On Point RG

Closing Day

The Closing – What to Expect A popular option for sellers in Wisconsin is to

By Jotterstrom|2020-04-12T00:50:34+00:00February 18th, 2020|0 Comments

Final Walkthrough

Final Walk-Through More of a formality than anything else, the final inspection takes place anywhere

By Jotterstrom|2020-04-12T00:52:54+00:00February 18th, 2020|0 Comments

What happens when I accept an offer?

The Contingency Period - Your Listing is now "Active with Offer" in MLS Once the

By Jotterstrom|2020-04-12T01:05:40+00:00February 18th, 2020|seller|0 Comments

Offers and Negotiation

The Offer Process Once a buyer decides that your home is the right one for

By Jotterstrom|2020-04-12T01:25:56+00:00February 18th, 2020|seller|0 Comments

Adjustable Rate Loans

Adjustable-rate mortgages typically have a lower interest rate that may go up or down after

By Jotterstrom|2020-04-13T14:23:39+00:00November 12th, 2019|loan repayment options|0 Comments

Fixed Rate Loans

A fixed-rate loan locks in your interest rate for the entire loan term, which typically

By Jotterstrom|2020-04-13T14:27:40+00:00November 12th, 2019|loan repayment options|0 Comments

USDA Loans

Government-insured U.S. Department of Agriculture (USDA) loans do not require a down payment and may

By Jotterstrom|2020-04-13T14:29:19+00:00November 12th, 2019|government insured loans|0 Comments

VA Loans

A VA loan is guaranteed (to the lender) by the U.S. Department of Veterans Affairs

By Jotterstrom|2020-04-13T14:33:00+00:00November 12th, 2019|government insured loans|0 Comments

FHA Loans

FHA loans, which are federally insured by the Federal Housing Administration, require a down payment

By Jotterstrom|2020-04-13T14:37:45+00:00November 12th, 2019|government insured loans|0 Comments

Jumbo Loans

A jumbo loan is a loan for an amount that exceeds the conforming loan limits

By Jotterstrom|2020-04-13T14:41:50+00:00November 12th, 2019|basic loan types|0 Comments