Could Someone Explain the Mortgage Process to Me?

Question

I am mostly curious about the payout of the loan itself. I think I understand the rest. After you are approved, etc for the mortgage, where does that money go? What type of account is it wired to, my checking/savings? Do I have access to it? Can I withdraw it? How do I send the money to the seller I'm buying the homes from?

Answer 1

you never see it. the bank gives it to the seller at the 'closing' where all the papers are signed and you become the owner.

Answer 2

When one "closes" the mortgage, the mortgagor (usually a representative of the bank) hands a certified check directly to the seller. As the buyer, you may be allowed to look at it, but probably not to touch it. 8-) At that time, the buyer may have to write or may receive relatively small checks to cover various contingencies, interest on bridge loans, refund of promisaary notes, etc,

Answer 3

Depending on how things are handled in your state the title company handles all the dispursment of the lenders loan proceeds. You never get your hands on it. You just start making payments to the lender month by month for the life of your loan once you take possession of the property. The title cuts everyone their checks from the loan proceeds, the realtors, the seller, the appraisers, loan officer etc.

Answer 4

The webguide http://mortgagehelp.assistancecenter.info

has highly useful info on mortgage and home financing.
You can get all your doubts clarified from the site.
Check it out. Good luck!

Answer 5

Keybords
History of timely payments - rate- % equity in home or % cash - Sustained employment history - credit report.
I found interesting information about your answer & the best options here.
http://all-mortgage-calculators.blogspot.com/2007/07/mortgage-loans.html
Good luck!

Answer 6

the money is WIRED to the attorney....the attorney hands the amount to the seller. after all liens are subtracted.

you never touch the money