Since the value and marketability of condominium properties is dependent on items that do not apply to single-family homes, there are some additional steps which must be taken to determine if condominiums meet our guidelines.

One of the most important factors is determining if the project the condominium is located in is complete. In many cases, it will be necessary for the project, or at least the phase your unit is located in, to be complete before we can provide financing. The main reason for this is, until the project is complete, we cannot be certain the remaining units will be of the same quality as the existing units. This could affect the marketability of your home.

In addition, we will consider the ratio of non-owner occupied units to owner-occupied units. This could also affect future marketability since many people would prefer to live in a project which is occupied by owners rather than renters.

We will also carefully review the appraisal to insure it includes comparable sales of properties within the project, as well as some from outside the project. Our experience has found using comparable sales from both the same project as well as other projects gives us a better idea of the condominium project's marketability.

Depending on the percentage of the property's value you would like to finance, other items may also need to be reviewed.

Both a home inspection and an appraisal are designed to protect you against potential issues with your new home. Although they have totally different purposes, it makes the most sense to rely on each to help confirm you have found the perfect home.

The appraiser will make note of obvious construction problems such as termite damage, dry rot or leaking roofs or basements. Other obvious interior or exterior damage which could affect the salability of the property will also be reported.

However, appraisers are not construction experts and will not find or report items which are not obvious. They will not turn on every light switch, run every faucet or inspect the attic or mechanicals. A home inspector generally performs a detailed inspection and can educate you about possible concerns or defects with the home.

Accompany the inspector during the home inspection. This is your opportunity to gain knowledge of major systems, appliances and fixtures, learn maintenance schedules and tips, and to ask questions about the condition of the home.

Federal Law requires all lenders to investigate whether or not each home they finance is in a special flood hazard area as defined by FEMA, the Federal Emergency Management Agency. Floods happen anytime, anywhere. The Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 help to ensure you will be protected from financial losses caused by flooding if you have a flood insurance policy.

We use a third party company which specializes in the reviewing of flood maps prepared by FEMA to determine if your home is located in a special flood hazard area. If it is, then flood insurance coverage will be required, since standard homeowner's insurance does not protect you against damages from flooding.

Licensed appraisers who are familiar with home values in your area perform appraisals. We order the appraisal as soon as the appraisal fee is paid. Generally, it takes 10-14 days before the written report is sent to us. We follow up with the appraiser to insure that it is completed as soon as possible. If you are refinancing, and an interior inspection of the home is necessary, the appraiser should contact you to schedule a viewing appointment. If you do not hear from the appraiser within seven days of the order date, please inform your Mortgage Banking Officer. If you are purchasing a new home, the appraiser will contact the real estate agent, if you are using one, or the seller to schedule an appointment to view the home.

We define manufactured housing as housing units which are factory built with a steel undercarriage that remains as a structural component and limits the structure to a single story. These types of manufactured homes are sometimes known as mobile homes. We do not consider other factory-built housing (not built on a permanent chassis), such as modular, prefabricated, panelized, or sectional housing, to be manufactured housing. If your home is one of these types, please complete the application indicating your home is a single family home.

In order to qualify for our loan programs a manufactured home must meet the following requirements:

• A manufactured home is any dwelling built on a permanent chassis and attached to a permanent foundation system.
• Be a one-family dwelling which is legally classified as real property.
• The towing hitch, wheels, and axles must have been removed and the home must be permanently attached to a foundation system which meets state and local codes as well as the manufacturer’s requirements.
• Foundation system must be appropriate for the soil conditions for the site and meet local and state codes.
• Must have been built in compliance with the Federal Manufactured Home Construction and Safety Standards established June 15, 1976. Generally, compliance with these standards will be evidenced by the presence of a HUD Data Plate that is affixed near the main electrical panel of the home or in another readily accessible and visible location.
• Must be at least double-width, 24 feet wide, and have a minimum 600 square feet of gross living area. Must be acceptable to typical purchasers in the market area.
• Must be on owned or leased land.

Your property must be complete and in good condition. Unfinished areas or repairs and renovations in process may affect our ability to offer some loan products.

Please describe your property condition to us in detail if it is in some way incomplete.

The closing will take place at one of our branch locations or at the office of an attorney in your area, who will act as our agent. If you are purchasing a new home, the seller may also be at the closing to transfer ownership to you.

During the closing you will be reviewing and signing several loan papers. The closing agent or attorney conducting the closing will be able to answer any questions you have and you may feel free to contact us for further clarifications.

To make sure there are no surprises at closing, the agent will contact you a few days before closing to review your final fees, loan amount, first payment date, etc.

The most important documents you will be signing at the closing include:

The Loan Estimate

This document is a form that lays out important information about the loan you applied for. The lender sends you a Loan Estimate within three business days of receiving your application.   

The Closing Disclosure

This document is a form that lists all final terms of the loan you’ve selected, final closing costs, and the details of who pays and who receives money at closing. Your lender sends you a Closing Disclosure at least three business days before closing.   

Note

This is the document you sign to agree to repay your mortgage. The note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties you may incur if you fall behind in making your payments.

Mortgage

This document pledges a property to the lender as security for repayment of a debt. Essentially this means you will give up your property to the lender in the event that you cannot make the mortgage payments. The Mortgage restates the basic information contained in the Note, and details the responsibilities of the borrower.

The Notice of the Right to Rescind

This notice informs you that you have three business days from the lender’s fulfillment of certain conditions to cancel your loan and provides a form for cancelling the loan, if applicable. This does not pertain to loans used to purchase a home, but does for refinancing and home equity lines of credit.

The Initial Escrow Statement

Lists the estimated taxes, insurance premiums, and other charges the lender anticipates paying from your escrow account during the first year of your loan, if applicable.

Please contact your lender if you have questions about attorney representation. By all means, we recommend that you have an attorney at the closing if it would make you more comfortable. If your attorney has any questions about your new mortgage, please refer them to us. We would be happy to provide any information necessary.

The closing agent acts as our agent and will represent us at the closing. He/she will contact you prior to closing to talk about your final documents and to provide a final breakdown of your closing fees. If you have any questions the closing agent cannot answer during the closing, ask them to contact us by phone and we will get you the answers you need - before the closing is over.

If you are not able to attend the loan closing, contact your Mortgage Banking Officer to discuss other options. If someone you trust is able to attend on your behalf, you may execute a Power of Attorney so the person can sign documents on your behalf.