Do you have a question about the mortgage lending process? Explore the answers to some of our most frequently asked questions below!

Frequently Asked Questions

Do both persons on the loan have to go on the Title?

Yes, if an individual’s name is on the Mortgage Note, their names must also be on the title. Sometimes it is more advantageous to apply for the mortgage solely in the name of a person with the higher credit score and lower debt load. If that is the case, the individual applying for the loan, can add other parties’ names to the title.

Can you use borrowed money for closing costs?

Yes, but only if the borrowed funds are “secured borrowed funds”. For instance, using a home equity line of credit is acceptable. Borrowing against a retirement account is acceptable. However, borrowing funds on an unsecured credit card would not be acceptable.

Can you pay off a Loan early?

For conventional loans, and government loans, the mortgages can be paid off early with no penalty. However, for private mortgages, or hard money loans, the terms can vary. Some private loans may have pre-payment penalties, or balloon payments that are due per the individuals note.

Can you choose your own Title Company?

If you are refinancing a mortgage, yes, the borrowers can choose their own title company. If you are purchasing a home the title company typically is chosen by the party who will be paying for the title policy required when obtaining a mortgage loan. This varies per county you live in and the verbiage elected on the purchase contract.

Do both persons on the loan have to be present to sign?

No, both persons do not need to be present to sign. They do need to sign, however there are a few ways to accommodate an out of town borrower. Another individual can act as the Power of Attorney for the individual buying. The second is to use a courtesy closer or mail the documents to the out of town borrower to sign and return to the title company.