For many, the home buying process is new territory. That is why we've provided this outline to help you get acquainted with the typical process. Our home loan personnel are trained to guide you through the process, educate you on all the loan options available, and will be there every step of the way.
A Loan Officer is available to assist you. To start the process, please inquire below or download an application.
Your loan application will be submitted for pre-qualification; certain conditions may be necessary before a final approval can be given to you. Conditions may include items that we must take care of, as well as additional documentation that you may need to provide to us.
At the time of application, you will be provided with important disclosures. Common disclosures include:
• Loan Estimate (LE): An estimate provided to you that details closing costs and fees required to secure the mortgage, such as points, processing fees, and title examination, including researches. It is a written disclosure of credit terms and conditions for your loan. It will include the finance charge, annual percentage rate, total payments, amount financed, and other charges incurred in your loan transaction as required by the Truth-In-Lending Act.
• State & Federal Disclosures: Disclosures that are required by the federal government specific to the type of mortgage terms you are applying for.
Once you have chosen a property, the following items will be ordered:
• Title search and examination: A review of the legal records to check the validity and completeness of the title of the property. This search will be performed by an attorney or title company to uncover any liens or other claims made against the property by other people.
• Appraisal: An opinion or estimate of the value of a property made by an experienced, approved appraisal firm selected by Heritage Bank. This appraisal will be based on factors such as the current real estate market and comparable home sales in the neighborhood.
Once the title report, appraisal, and flood certification are received, along with any additional documentation we have asked you to provide, your loan file is ready for final review and approval. At this time, the closing attorney will contact you to schedule the loan closing. You will receive your final estimate of closing costs, provided to you on the Closing Disclosure. You may also need proof that you have the following types of insurance for your new property:
• Hazard Insurance (including wind & hail): Typically protects you and the mortgage company in the event of any loss or damage to the property due to theft, fire, or certain weather-related losses.
• Flood Insurance (if required): Typically provides compensation to you and the mortgage company in case the property is lost or damaged from rising water. See your insurance documents for actual coverage.
Your closing is the meeting between you, the seller, your real estate agents, and the lender or their agent. At this meeting, the property and funds legally change hands and the mortgage documents are signed. The closing will take place with your approved attorney at either a Heritage Bank branch most convenient for the borrowers or any approved attorney's office.
At the loan closing, you will review and sign the required closing documents that will provide the lender to transfer the necessary funds to the seller, so that you will now own the property and agree to repay the lender the loan used to secure the new property. The Mortgage is the document that places a lien on the property as security for repayment of your home loan. The Note represents your agreement to pay the lender according to the agreed-upon terms of the loan.
Once your loan is closed, it will be transferred to our servicing department, who will help you with all your needs in regards to your monthly statements.