If You Are Buying Real Estate And Financing It With A Mortgage From A Lender We Represent
Please Read The Following Information
As you know, our office represents your lender in the mortgage loan you have applied for to purchase your new home. We have commenced an examination of the title, ordered tax information from the Collector of Taxes and a mortgage survey plan for the lender's records. When these items are completed and reviewed by our staff, we will notify you to arrange a convenient time to close the loan. We will also advise you of any funds you may need to complete the transaction. You must bring CERTIFIED or BANK CASHIER'S CHECKS made payable to yourself for these funds. In addition, you must bring with you to closing a valid drivers license or passport for proper identification. We cannot close your transaction without same. Please do not forget as this is very important.
Please review the Lender's commitment letter carefully. If special conditions are required, they must be met to the satisfaction of your lender Prior to closing.
Please review the following instructions with respect to additional requirements that must be met prior to closing. Respond to each item applicable to your situation either on this web site or in writing. If you have any questions or comments relative to the loan transaction, please do not hesitate to contact us by telephone or by e-mail.
1. INSURANCE. (a) At the time of closing, please bring with you a fire and extended coverage insurance policy or binder for such insurance in an amount at least equal to the total of all outstanding mortgages on the property or 100% of the replacement cost of all insurable buildings and other improvements on the land, whichever is less. IF YOU ARE GOING TO RELY ON THE 100% REPLACEMENT COST AMOUNT AS SUFFICIENT INSURANCE, THEN THE POLICY OR BINDER MUST STATE THAT 100% REPLACEMENT COST IS IN EFFECT. (b) The insurance policy or binder must name all of the persons who will hold title to the property. (c) The mortgage clause adding the mortgagee’s insurable interest to all policies MUST BE WORDED in accordance with the instructions listed in your commitment letter issued by your lender. IT IS IMPERATIVE THAT THE ABOVE LANGUAGE BE ON YOUR INSURANCE BINDER. Your insurance agent MUST fax or deliver to our office a copy of a binder for such insurance along with a receipt showing that the first year’s premium is paid in full, at least three(3) business days prior to closing.
2. FLOOD INSURANCE. If the premises is located within a specially designated federal (HUD) flood hazard area (Zone A) then flood insurance is a mandatory requirement and you must provide a flood insurance policy application together with a paid receipt for the full first year’s premium at or before the closing. Please note that if the premises is located within zone B, flood insurance is not required although it is highly recommended.
3. RENT LOSS INSURANCE. If this transaction involves a loan on investment premises then rent loss insurance may be required and an appropriate binder to that effect will be required at or prior to closing. You should check with the Lender for applicability of rent loss insurance to you.