The question of mortgage affordability often hinges on either credit, the amount of money needed to close on the loan and the minimum income needed to qualify for a mortgage loan.  Finding out the income necessary to qualify for a specific mortgage amount can be ascertained quickly with the use of a mortgage calculator. 

Income, current debt payments, the loan term and mortgage interest rates all help determine the amount of money a borrower would qualify for to purchase a home.  The mortgage affordability calculator will help estimate the amount of income needed to qualify for a home loan based on the other variables listed.  The mortgage calculator can be used to calculate the lowest level of income needed to secure a particular home loan by letting the user input the prevailing mortgage rate, the loan amount, loan term and current debt payments.

This free mortgage calculator can take into account a number of options to calculate the income needed for the loan.   The user of this calculator can compare the effects of different mortgage loan types with different rates and different terms to see what impact it may have on the minimum income need to qualify for the loan.

To arrive at the minimum income needed to qualify for a loan amount, the mortgage qualification calculator has to follow some guidelines regarding loan qualifications.  For income guidelines in mortgage lending, the most common guidelines or parameters a mortgage lender utilizes are housing ratios.  

Mortgage lenders use housing ratios to analyze the proposed mortgage payment relative to income and total debts of the borrower.  The housing ratio, or front end ratio, compares the total mortgage payment to the borrower’s monthly income.  The total debt ratio, or back end ratio, compares the total monthly payments including the mortgage payment to the borrower’s monthly income.  The housing payment ratio or front end ratio used by the mortgage lenders and used by the mortgage calculator should generally not exceed 32%.  The total debt ratio or back end ratio used in the calculations should not exceed 38%. 

These ratios are used to calculate the maximum monthly payment a borrower may qualify for based on their monthly income or they may also be used to calculate the minimum monthly income needed to qualify for a home loan based on the loan payment and debts. 

The mortgage calculator will evaluate the minimum income needed to qualify for a loan amount based on the borrower’s monthly debt payments and the current mortgage rate and loan term input into the mortgage calculator.  The mortgage calculator collects the variables input and determines the required income to qualify for the desired mortgage amount.

The online mortgage calculator should be used for informational purposes when it comes to loan qualifications based on income.  Mortgage lenders use housing and debt ratios as guidelines, other factors can change how these guidelines apply to specific home loans.  For instance, compensating factors such as excellent credit or a large down payment may allow the mortgage lender to exceed the standard housing ratio guidelines which would allow a borrower with a lower monthly income qualify for a larger loan amount.

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The bank mortgage rates used are from the top five largest banks, include: Chase Bank mortgage, Bank of America mortgage, Citibank mortgage, Wells Fargo mortgage and US Bank mortgage.  The mortgage rates are for owner occupied, single family homes with a minimum 20% down payment and generally requires very good credit in order to obtain the listed rates.

The following mortgage rates dated as of March 7, 2101 were input into the mortgage calculator to calculate current monthly mortgage payments on a $200,000.00 home loan.  The monthly mortgage payment results returned from the mortgage payment calculator are for principal and interest only and do not include taxes and insurance.

Chase Bank Mortgage 30 year rate is 5.000% with 1.375 points and a 5.194% APR.  The monthly mortgage payment for a $200,000.00 home loan with this rate according to the mortgage payment calculator would be $1,073.64 per month.

Wells Fargo 30 year rate is 4.875% with 1 point and a 5.065% APR resulting in a $1,058.42 per month payment on the $200,000.00 using the mortgage payment calculator.

US Bank 30 year rate is 4.875% with 1 point and a 5.029% APR which also returns a $1058.42 monthly mortgage payment.

Bank of America 30 year rate is 4.875% with 0.875 points with a 4.987% APR reflecting a $1,058.42 monthly payment based on the mortgage calculator.

Citibank Mortgage 30 year is at 5.00% with 0.50 points and a 5.259% APR, the mortgage payment calculator calculates a $1,073.64 per month payment on this loan.

The average monthly mortgage payment based on this week’s mortgage rates came in at $1,064.51.  Down payment requirements have escalated on conventional loans in the past two years making the cost of acquiring home rise, but with mortgage rates continuing to hover near their low point for the past several years, the monthly payment remains low. 

Mortgage loan rates are subject to change.  Mortgage loans are conditional upon bank approval which requires a review of assets, income, credit and property value.

The free mortgage payment calculator is good start to discovering home affordability and comparing mortgage rates and loan offers from different banks.

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At the present time, FHA loans require a low a 3.5% down payment.  The credit criteria and has tightened along with all mortgage loans but is still less stringent than other conventional mortgage loans.

When using the mortgage calculator to calculate monthly mortgage payments on these loans it is essential that the current FHA loan rate be entered into the mortgage calculator and not the mortgage rate on standard conventional loans. 

Frequently, the mortgage rate on conventional loans is similar or close to the rate found on FHA loans.  However, this is not always the case and the mortgage rate difference between the two loan products can be significant.  When it comes to investigating mortgage qualifications and mortgage payments with the mortgage calculator, the only means of retrieving accurate results is to input accurate data.

For instance, the mortgage rate offered by Bank of America Home Loans for a conventional fixed rate loan is 4.75% with 1.375 points.  The mortgage rate on an FHA loan from Bank of America is 4.87% with 1.375 points.  With Wells Fargo Home Mortgage rates today, the FHA loan rate is 5.125% with 1.0 point and an APR of 5.537% while the standard conventional loan rate is at 4.875% and 1.0 point with a 5.052% APR. 

Using these numbers in the mortgage payment calculator, the results show that on a $200,000.00 mortgage loan with Wells Fargo the monthly mortgage payment will be $1,058.42 for the conventional loan and a $1,190.82 monthly mortgage payment for the FHA loan.

If Bank of America mortgage rates are entered into the mortgage payment calculator, the monthly mortgage payment for the conventional loan is $1,043.29 while the monthly payment for the FHA loan will be $1,058.42.

The monthly principal and interest payment that is calculated by the mortgage payment calculator above does not include taxes or insurance or the FHA required monthly mortgage insurance payment. 

The sample rates used as input for the mortgage calculator were taken directly from the mortgage lenders website, the accuracy is not guaranteed and all loans would be subject to bank approval and conditions.  Mortgage rates listed are the current rates for a single-family, primary residence and are subject to change without notice.

The other factor to consider when evaluating the qualification requirement on these loans is that the closing costs are often slightly higher with an FHA home loan.  This number is not factored into the mortgage rate and therefore is not evaluated by the mortgage payment calculator.  The difference in loan costs can impact the amount funds needed at closing and the costs of both a conventional mortgage loan and FHA mortgage loan can be compared with a mortgage loan comparison calculator to thoroughly measure all of the home loan costs, not just the mortgage rate.

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When mortgage rates move substantially lower, mortgage refinance activity generally rises.  In the past year, as mortgage rates have drifted lower and remained low, mortgage refinance activity has changed very little.

Certainly, a share of the diminished refinance activity is brought on by a drop in home values and an increase in unemployment.  While these factors will surely put a damper on mortgage activity, both purchase and refinances, it appears as though it does not explain away the current low levels of mortgage refinancing.

Additional factors weighing on consumers and their ability to refinance debt may include lower credit scores for many potential home loan borrowers and tighter lending standards.  But there still remains a large segment of existing mortgage borrowers that have not taken advantage of the current low rate environment.

A simple procedure to evaluate the possible savings with a mortgage refinance is to utilize the mortgage calculators including the mortgage payment calculator and mortgage refinance calculator. The free mortgage calculators can quickly ascertain the savings with a mortgage refinance based on information about the existing mortgage balance, current mortgage rates and the new mortgage term being evaluated.

With the wide variety of mortgage options and the changing lending environment, the mortgage calculator can be an essential tool to help review all the options and the benefits of a refinance transaction.  By changing the mortgage rate entry in the mortgage calculator as well as the mortgage term, the user can compare several mortgage loan alternatives quickly and efficiently.

A mortgage refinance calculator can not only measure the monthly savings that comes with a lower payment but can also measure the long term cost savings over the life of the loan on a number of different loan choices.  The mortgage calculators can also factor in savings by using a mortgage refinance to consolidate additional debt into the new mortgage loan.

An added surprising, benefit of lower mortgage volume is the increased level of customer service.  With fewer mortgage loans to process and underwrite, mortgage lenders have more time for customer service and assistance with mortgage applications.  Use the mortgage calculators to compare the options and savings and then shop for the mortgage lenders that offer the best rates and service to help with the transaction.

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The monthly payment calculator involves a relatively straight forward payment calculation that is predominantly influenced by the purchase price of the home or loan amount in the transaction.  The mortgage rate, for the most part, is determined by market conditions while the down payment is restricted, for most borrowers, by the amount of available savings.  This doesn’t preclude the potential borrower and mortgage calculator user from manipulating these figures, they are just often restricted in the amount of variability in these inputs. 

A lower mortgage rate can be obtained by paying more closing or discount points.  This will have the trade off of a lower mortgage rate but increased costs to obtain the home loan.  The mortgage calculators can be used to evaluate these trade offs to help determine which scenario is better for an individual borrower.

Likewise the down payment component entered into the mortgage calculator can be altered to investigate how the payment is impacted with a smaller or larger down payment.  The type of mortgage loan applied for may have some impact on the amount of the down payment needed and should be considered.  Notably, FHA loans require substantially smaller down payments then standard conventional mortgage loans.

Other factors that are frequently disregarded but should be evaluated include taxes and insurance.  These mortgage calculators can factor in PMI (Private Mortgage Insurance) for loans where less than 20% is used as a down payment.  Taxes and home owners insurance should also be taken into consideration regarding their effect on the total monthly mortgage payment, especially as real estate taxes have risen so dramatically in recent years in many housing markets.

The key to using the mortgage calculators to obtain the most amount of pertinent information regarding a particular home loan is to have good data to input in the mortgage calculator, such as current mortgage rates, and to evaluate all of the data such as the loan term, mortgage rates, mortgage programs, taxes, insurance and closing costs. 

Mortgage payment calculators can quickly calculate a monthly mortgage payment regardless of how many different variables are entered, the more variables that are accurately entered the more helpful the results of these calculations will be for the home loan borrower.

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Accurate data is the key to using all mortgage calculators.  Mortgage payment calculators, specifically, rely on accurate data regarding current mortgage rates.  The input parameters for the mortgage payment calculator are the term or length of the home loan, the mount of the mortgage loan and the mortgage rate.  The user can choose to change the term and loan amount to see which loans are in their best interest or to determine how to obtain the right payment amount to qualify for a home loan, but the mortgage rate input should be based on current market rates not user discretion.

The five biggest U.S banks with mortgage lending divisions includes Chase Bank mortgage, Bank of America mortgage, Citibank mortgage, Wells Fargo mortgage and US Bank mortgage.  The following mortgage rates were obtained from these bank websites to use in the mortgage payment calculator to ascertain current monthly mortgage payments for a $175,000.00 home loan.  The rates are for single family homes that are owner occupied and do not require mortgage insurance.  The list includes the mortgage rate, points charged, the APR and the monthly mortgage payment result using these numbers in the mortgage payment calculator.

Wells Fargo 30 year rate is 4.875% with 1 point and a 5.065% APR resulting in a $926.12 per month payment using the mortgage payment calculator.
US Bank 30 year rate is 4.875% with 1 point and a 5.029% APR resulting in a $926.12 monthly payment.
Bank of America 30 year rate is 4.875% with 0.625 points with a 5.040% APR reflecting a $926.12 monthly payment based on the mortgage calculator.
Chase Bank Mortgage 30 year rate is 4.875% with 1.5 points and a 5.087%9 APR showing a $926.11 per month payment.
Citibank Mortgage 30 year is at 5.00% with 0.50 points and a 5.259% APR, the mortgage payment calculator calculates a $939.44 per month payment on this loan.

Mortgage rates are subject to change and rate and points may be different depending geographic location as well as the applicant’s credit history, income and assets.  In preparing the rates and payment options, selectcalculators.com attempted to obtain mortgage rates and points that were similar to avoid comparing lower mortgage rates with more points or costs with those that have fewer points and costs.  Please review the total costs of obtaining the home loan when choosing a mortgage lender and not just the mortgage rate and monthly mortgage payment.

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Closing costs can certainly add up to a significant sum.  A mortgage calculator is a good tool that can be used to evaluate the impact on the cost of a home purchase due to the closing costs.  Unfortunately, too many home buyers use the mortgage payment calculator by itself to compare and ascertain monthly mortgage payments or use a mortgage qualification calculator to measure factors such as the down payment needed.  In each of these cases, the potential home buyer is not adequately assessing the total cost of the home because they are ignoring the closing costs.

Since the closing costs can add up to a significant sum and should be factored into the total cost of the transaction, a mortgage calculator can aid in adding up these costs, measuring the impact they may have on the total cost of a home loan as well as simply forcing a potential buyer to review these figures before jumping into a new home loan.

Most mortgage loans involve a range of closing costs.  Each of the closing costs should be entered into the mortgage calculator to see how they will impact the total amount of funds needed to purchase or refinance a home loan.  For purchase transactions, the closing costs and down payment need to be paid at the time of closing.  As an example, if a home purchase and home mortgage require a 10% down payment on a $100,000.00 purchase and there are $3,500.00 in closing costs, that buyer will need to have at least $13,500.00 available to close on the home and this does not include any required reserves to be available as is common in most all mortgage loan transactions. 

For refinance transactions, the closing costs will generally have an option to finance these costs into the home loan amount.  As an example, if a the pay off amount on an existing mortgage is $97,550.00 and the closing costs add up to $3,500.00, the borrower may have the option to refinance a loan amount of $101,050.00 and not have to bring funds to close on the refinance transaction.  Of course, these added costs will impact the total costs of the home loan as well as the mortgage loan APR.  The changes in the mortgage loan APR and total costs over the life of the loan can also be evaluated with the online mortgage calculators.  A mortgage payoff calculator may also be beneficial to use before engaging in a refinance transaction.

Common closing costs found on most mortgage transactions that should be included in the mortgage calculator input will include the following:

Loan Origination Fees:  This is what mortgage lenders charge for processing or originating a home loan.  Origination fees or points can vary significantly between lenders.

Loan Discount Points:  Loan discount points are costs charged by the mortgage lender, usually established to reduce the mortgage interest rate on the home loan (one point equals one percent of the total loan).  A home loan with a larger discount points should have a lower interest rate.  A borrower can pay discount points to bring down the loan’s interest rate.

Title and Settlement Charges:  Most mortgage lenders require a title search and title insurance to assure that buyer or homeowner and the mortgage lender that the seller is the legal owner of the property and that there are no outstanding claims or liens against the property.  Title insurance policies are designed to protect the lender against an error in the results of the title search.  The cost of the policy (a one-time premium) is usually based on the loan amount and is often paid by the buyer.

The loan closing or settlements may be conducted by the title insurance company, mortgage lender, escrow companies, or attorneys.  In most cases, the settlement agent is providing a service to the lender, but the cost will be paid for by the buyer.  Costs for settlement services vary widely.

Tax and Insurance Escrows:  Most mortgage lenders require that the borrower set aside money in an escrow (or reserve) account to pay for property taxes, homeowner’s insurance, and flood insurance (if applicable).  This is an account into which the home buyers deposit money and lenders pay portions of your home owner’s insurance and property taxes as they are due. 

Mortgage Lender Fees:  These items generally include costs such as the credit check, property appraisal and flood certification. 

Interim Interest:  Between the time that buyers take possession of their new home and the date of their first payment, interest is accruing on the home loans.  This amount is charged up front at closing and will depend on the loan amount, interest rate, and number of days between settlement and the first monthly mortgage payment.

Taxes and Recording Requirements:  Depending on the state and city, a buyer may be required to deal with the costs for transfer fees and recording fees.  Transfer and recording fees may be low some areas or can cost as much as 1% to 2% of the purchase price.

To assure that you are obtaining the best mortgage loan and that the correct figures are used with the mortgage loan calculator, be sure to shop and compare mortgage rates and closing costs from more than one mortgage lender.

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The consensus economic forecast since the end of the year has been one calling for higher mortgage rates.  Fortunately, the rate increases have not yet materialized and consumers do not have to fret over the increased cost of homeownership due to a raise in interest rates. 

Mortgage rates have in fact risen modestly this year.  The average 30 year fixed rate mortgage was 5.04% for all of 2009 according to the weekly FHLMC mortgage survey.  For January, 2010 the average 30 year rate has increased to just 5.05%, on average, according to the same survey.  Using the mortgage payment calculator it is easy to see how a minor rate change like this or an even larger mortgage rate increase that may come, if the economy does expand, will impact the monthly mortgage payment.

Now, housing regulators have announced plans to tighten their lending standards for FHA mortgage loans.  The Federal Housing Administration made the changes to protect taxpayers from increased loan losses and support the housing market. 

The changes in for FHA loans will initially impact the insurance costs to the homeowner but the Federal Housing Administration is also proposing raising the down payment requirement as well.

The first part of the changes entails increasing the mortgage insurance premium charged to the borrower to 2.25% from the current level of 1.75%.  This change is due to take effect this spring.  The bigger change is the down payment requirement change which requires new borrowers to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program.  New borrowers with less than a 580 FICO score will be required to put a 10% down payment to obtain an FHA mortgage.

The mortgage calculator can help determine what price home and what monthly payment a potential home loan borrower can afford based on these changes.  The mortgage insurance premium increase can be input into the mortgage calculator under closing costs.  The down payment change also be input into a mortgage qualification calculator as we all as the mortgage payment calculator to evaluate both the maximum loan amount a borrower may qualify as well as the change in total funds needed to close on a home loan based on the new changes.

Whether these changes will impact a borrower or not, every new home loan applicant should review their home loan financing position by using the mortgage calculators to investigate mortgage rates and payments, mortgage closing costs and costs over the life of loan as well as an estimate of what your qualification status is.

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For some of these home owners, running through various scenarios and calculations with the mortgage payment calculators may have more clearly shown the potential burden they were undertaking with a high monthly mortgage payment.  For others, the mortgage calculators would have displayed the potential trouble when their adjustable rate mortgage experienced a mortgage rate change and drove the costs of their loan higher.  And for yet more borrowers, the use of the mortgage calculators would helped to assess the true cost of the mortgage not just the monthly mortgage payment.  

Those home owners that are now in distress because of an adjusting mortgage payment or higher monthly housing costs or lack of reserves due to a costly home loan would have been well served to investigate all these number and the ramifications by using one of the many online mortgage calculators.

For those consumers that are having mortgage loan troubles due to a financial hardship such as job losses or medial bills or other unforeseen and hard to protect against financial hardships there is at least some help available.  If you have fallen behind on your payments, you should consider discussing some of the following foreclosure prevention options with your mortgage lender or loan servicer.

Mortgage loan reinstatement.  In a reinstatement, the borrower will pay the mortgage lender or loan servicer the entire past due amount, plus any late fees or penalties, by a date agree upon by the borrower and the mortgage lender.  Generally this option is suitable for present borrowers that have a temporary financial problem impacting their ability to make timely mortgage payments.

Mortgage repayment plans.  In a mortgage repayment plan the mortgage lender or servicer allows the borrower a fixed amount of time to repay the amount of the home loan that is past due.  The amount that is past due is calculated to be repaid over several months or a few years and is generally added to the existing monthly mortgage payment.  This alternative is also most appropriate for borrowers who ran into temporary problems or are not that far past due on their existing mortgage loans.

Forbearance.  With mortgage forbearance the existing monthly mortgage payments are reduced or suspended for a period of time.  At the end of that time, the regular monthly mortgage payments resume as well as a larger payment or additional amounts are added to the regular monthly payment in order to bring the loan current.  Forbearance can be a good opportunity for borrowers that have had a temporary reduction in income.

Home loan modifications.  On modifications the mortgage lender or mortgage servicer agrees to permanently change one or more of the terms of the mortgage contract.  Loan modifications may include reducing the mortgage rate, extending the term of the home loan, or adding missed payments to the loan balance.  A mortgage loan modification may also involve reducing the current loan balance or the amount of money owed on the mortgage loan where the mortgage lender forgives, or cancels a portion of the mortgage debt. 

Selling the house.  Selling a house is always an option to get out of burdensome mortgage debt.  Selling a home to escape the mortgage balance due may very well depend on the real estate market and whether the mortgage lender will accept a loan payoff that is les than the existing balance if selling your home does not provide the funds you need to pay off your current mortgage debt in full.

Bankruptcy protection.  If you can not find any other options to alleviate your financial burden brought on by your current mortgage you may want to investigate filing Chapter 13 bankruptcy.  For borrowers that have a regular income, a Chapter 13 bankruptcy filing may allow the homeowner to keep their home that you might otherwise lose without bankruptcy protection.  In Chapter 13, the court approves a repayment plan that allows the homeowner to use their future income toward payment of their debts during an extended period of time that is generally between three to five years, rather than giving up the property.  After you have made all the payments under the plan, you receive a discharge of certain debts.  Bankruptcy is generally considered the debt management option of last resort but it is a viable legal procedure that can offer a fresh start for people who can’t satisfy their debts.  
 
This is not an exhaustive list of all the options available when you are experiencing mortgage payment problems.  In addition, you may want to seek out a housing counselor for help.  A counselor with a housing counseling agency can assess your situation, answer your questions, go over your options, prioritize your debts, and help you prepare for discussions with your loan servicer.  Housing counseling services usually are free or low cost.  Be careful to use a reputable counselor fro assistance.

Even when you already having mortgage payment problems, it is a good approach to use the mortgage calculators to asses the outcome of the various options available.  The mortgage calculators can help review your current position and debt load as well display the budget relief provided by these various payment plans.

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What is the Closing?

The home loan closing or closing is when you finalize all the paperwork for a new home.  The closing or settlement is the legal process of transferring ownership of a home from one person to another, and usually involves the purchaser obtaining a mortgage loan to finance the home purchase.  At the closing, essentially all of the work you’ve done up to this point is wrapped up.  Large stacks of papers will be signed, money will change hands and finally, keys will be exchanged.  At the end of the closing process, you will actually own a new home.

Who Attends?

The closing is attended by the main parties involved in the sale and purchase of a home.  That means you will be there with your spouse or co-buyer, realtor, and possibly an attorney.  It is possible to represent yourself without an attorney or realtor, but be sure you educate yourself completely on the purpose and implications of all the documents you’re signing – this is not a time to misunderstand.  It is advisable to have some form of experienced representation.

The seller will attend the closing along with his attorney or realtor.  The broker may also be present to help shuffle the paperwork around the table for the appropriate signatures, or it may be handled by the lawyers and realtors.

What Do I Bring?

When you’re ready to close on your new home, you’ve hopefully been working diligently with your realtor and the mortgage lender throughout the entire process.  You must bring any documents that have been requested by the broker or seller as well as the mortgage lender.  You must also bring proof of homeowners insurance that you have arranged to cover the new home.  In addition, you should bring a cashier’s check to cover the difference between the required down payment plus the mortgage closing costs less the escrow money that you have already paid.

As you should always be ready in case of a surprise or emergency, be sure you also bring your regular checkbook, a pen and a current driver’s license or other photo identification.  You can look at the Department of Housing and Urban Development settlement sheet to verify you have everything you need with a  sample HUD-1 settlement sheet.

What Do I Do?

The closing agent will generally make sure everything is signed and recorded and that the appropriate funds are collected for various fees and expenses and that they are properly disbursed.  The agent will explain each document including the transfer of title, the mortgage and mortgage loan and give you and your attorney (if in attendance) the chance to look at them.

If you’ve been working with a realtor or lawyer, they will help walk you through the actual closing as well.  You will arrive at the prearranged destination with your check, insurance and any other documents.  Your team will meet with the seller’s team.  You will sign a great deal of paperwork being careful to read through each page and understand it completely, especially the terms of the home loan and mortgage closing costs.

After all of the paperwork has be completed, you will show your proof of insurance as requested and the seller will be advised to maintain his home owner’s insurance until the sale is recorded at city hall.

Then, once all the paperwork formalities have been completed, the most exciting part of the closing will take place – you will get the keys.  Once the keys have been ceremoniously handed over, you will be in possession of the home and can move in right away.  The seller will also hand over as much information as he has about the equipment in the home including major appliances, air conditioning, and heating.  The entire process will likely be over in less than ninety minutes.

Caution!

There are a few things that can go wrong in a closing, which can draw out the process or stop it completely.  Fortunately, these things don’t happen very often, but they do happen.  It is possible that the mortgage lender or bank will come back with unacceptable terms at the last minute.  This may only stall a closing, but it can also stop it completely.  To prevent these types of issues, make sure to be in communication with the mortgage lender a few days prior to the home loan closing to confirm that there are no outstanding conditions that have to be met.

Use the mortgage calculator to confirm the final figures for the monthly mortgage payment, the mortgage rate and the apr so you are prepared for to review the numbers.

There may also be a surprise announcement at closing as to liens, or holds, on the property.  It may very well be that there is a hold on the property the seller was trying to outsmart or had honestly not considered important.  Preparing beforehand with a knowledgeable attorney or realtor can help prevent or at least soften the blow of situations such as these.

Ultimately, it is your responsibility to understand and agree with everything you are signing, so be sure you are reading and processing all of the information presented at the closing.  Then, when the mortgage loan paperwork and title paperwork and other essential documents are done and the keys are exchanged, you can rest assured that your home is truly your own with no complications or string attached – other than your new mortgage and new mortgage payment.

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