My Money Forum

I want to buy a home soon and I would like to be able to move in by the beginning of August. How long does the whole process usually take from the time you apply for a mortgage to closing the deal? I don't want to get started too early and be stuck with an apartment lease and a mortgage because if I remember correctly there is a time limit for completing the mortgage process after applying for the loan. Also, after I have closed when will I have to pay the first bill? Does it usually start immediately or does it take a month or two to start?

I've also heard about doing a lease-back or finding a bank that offers special deals where they delay payments for the first few months. Any information about these would also be greatly appreciated.

Look at your amortization table.

The first pay payment after closing is normally 35-40 days before your first monthly mortgage payment is due.

You may buy additional months by prepaying the interest. Make sure your loan officer know this fact as all financial information would be enclosed in the mortgage loan doc you would be required to sign at closing. Failure to have the additional prepaid interest and mortgage start date would be cause for new loan docs and additional escrow funds for the closing to take place.

You might consider beginning the process around the middle of April for your pre-approval with a mortgage lender. This pre-approval would give the amount you are able to pay for a house based on a formula used by the mortgage underwriter to determine this amount.

Your pre-approval would be good for approximately 90 days. Failure to find a property prior to the expiration date, you would need to be issued another pre-approval, this issuance in normally not a problem.

A lease/rent with an option is normally done by individuals not banks. These type agreements almost always are in favor of the owner not the person leasing or renting. Beware!!!

I hope this has been of some benefit to you, good luck.


"FIGHT ON"

You may want to apply for a mortgage now so that you find out how much you are pre-approved for and what your monthly payments would amount to. Since you will be quoted the max you can borrow, this helps you decide how much house you want (realistically) to buy to keep your monthly payments comfortable. This will also allow for you to produce without haste, the documentation your lender will require.

Finding the right house depends on each individual. In your scenario, you would have 3 months which is excellent. Once you find the right one and go under contract, it may take a minimum of 30 days -typically about 45- to close.

In your scenario, closing in July seems ideal. Your first mortgage payment would start in September.



Lease back is for sellers, not buyers. Perhaps you're referring to lease to buy which is typically done with a higher-than-market rate, to people that are not qualified for a normal loan. I've never heard of banks offering delayed payments deals.

The date on which your first mortgage payment is due is entirely dependent upon your mortgage loan contract. Yes, there are a few lenders who will delay that first payment due for a period of time. However, understand that interest costs on the money you have borrowed will still accrue. You can only work with your lender to determine when you will start paying.

A mortgage payment is paid in arrears, unlike rent. Normally, if you close in July your first payment is due in September. You pay interim interest at closing. If you would close July 31 you would pay 1 day interim interest. July 15, 17 days. If you close August 1, you can opt to pay no interim interest but your first payment would be due September 1. Some companies will let you go up to the 5th day of the month with no interim interest & payment due the next month.

Lisa is correct.

best loan could answer your question

url_not_allowed.gl/vQtDI