One-time Close Mortgage

Michael Holigan: Today we're going to talk about making life as easy as possible when getting a mortgage. We're going to talk about the one-time close. Before we do that though, let's show an example of the typical way that it's done. First, when you're getting a mortgage, you make application. Go into your lender, fill out all that paperwork. Then you come to qualified and approval. That takes them calling back and forth getting all of your history from the past, going through that, asking you questions you don't want to be asked, then finally you get qualified. Then an interim loan is obtained. That's a loan to build the house before the finals in place. Either the builder can get it, or you yourself can get that loan and then the house is built with that money. Then, all of your paperwork is updated. Everything you did at application just about has to be gone over again because it takes a while to build the house. They're going to go back, ask you all those questions again, chase for more paper work, have you up in the attic digging around, but you're going to get all that to 'em and then you finally go to closing. At that point, everybody is funded. The builder gets paid. The interim loan that it took to build the house is paid off. All the money is disbursed. A one-time close, the specialty about it is you go in, you make application, just the way you would on a regular program. Next, you get qualified and approved. You go through all of those headaches and then you close. That's it. Even if the house isn't built yet, the money is disbursed, can be put in escrow, the builder will be paid once the house is finished and approved, but all the funds went through. Whatever the current interest rate is you've got it. You're locked in, you're done. You've closed on the house. Advantages - just what I said, you're done. One time paperwork. You're finished, no hassles, no headaches. Disadvantages - not a lot of people do it, some banks, some S&L's. You're going to have to look around and shop for it. They're not going to be as flexible. Normally an adjustable rate mortgage, no fixed rate. But, if you're the nervous type, take a look - one-time close.

Episode 011 1995 - 96 Season

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