Q. What do I need to bring to closing?

A.  Closing will take place at the title company.  Each borrower will need to bring a valid driver's license

the day of closing.  The funds due at closing must be in the form of either a cashier’s check made out to the title company or a wire transfer.  You may write a personal check up to $1,500.

Q. How much do I need to insure my home for?

A.  It is your responsibility to secure homeowner’s insurance on the home you are purchasing prior to closing.  The minimum dwelling coverage required is the lesser of either:

a) The total combined loan amount

or b) The replacement cost on the appraisal

Because you may begin shopping for homeowner’s insurance before the appraisal is in, it may be necessary to begin gathering quotes with a minimum dwelling coverage of the combined loan amount.  You will be notified of the replacement cost once your appraisal is in.

Q. What is the Annual Percentage Rate on my Truth in Lending Document?

A.  The Annual Percentage Rate (APR) is the cost of your credit expressed as an annual interest rate.  Points and  other prepaid finance charges are factored into the APR to show the true yield on the loan, which is why the APR is often higher than your note rate.  The APR can be compared to the APR on other loan programs to give you a consistent means of comparing rates and programs.