Page 18 - KHovanian Homes - Pathway to Homeownership

Section 3 | Financing Your New Home Truth-in-Lending Disclosure. If you choose to pay in cash, you will receive a HUD-1 Settlement Statement. MORTGAGE COMMITMENT After you receive your mortgage documents, approval letter and your submission of the required documentation to the mortgage company, you will receive an initial commitment from the mortgage company. If any of the documents requested by the mortgage company have not been submitted to the mortgage company in a timely manner, your final Commitment may take longer. Until the mortgage company has all the required documentation, your Commitment is pending. Your agreement with K. Hovnanian® Homes requires that you have an initial Commitment within thirty days (30) of signing the Purchase Agreement. Please ensure that a copy is forwarded to your Sales Consultant. Rate Lock From the time to time throughout the building process, your lender can quote you the current interest rates. When you select an interest rate and give approval to “lock-in” your mortgage, this is the rate that will be assigned to your mortgage note. You only have one opportunity to lock your mortgage. Once your rate is assigned, a mortgage payment can be calculated more accurately. Your lender is the only one authorized to quote current interest rates and lock your loan. Locking your rate prematurely may result in extra expense if your new home is not complete within the lock period. Consult with your Sales and Closing Coordinator regarding your Closing Date before contacting your lender to lock in your interest rate. IMPORTANT! WHAT CAN AFFECT MY FINAL COMMITMENT? Please note that any significant changes in your financial circumstances that have occurred between the receipt of your Commitment and the date of your closing may impact your ability to obtain a mortgage. Additionally, if your closing occurs more than thirty (30) days after your lender issued your initial Commitment; they can/will order an additional credit report prior to your Closing Date. Changes in your financial circumstances (for example, purchasing a new car or opening a new credit card) will appear as a new liability on your updated credit report. Such changes may cause your lender to reconsider the terms and conditions of your Commitment. We strongly advise that you hold off on such purchases until after closing. FIRST MORTGAGE PAYMENT At closing you will be notified when your first mortgage payment is due. Typically, you will be provided with a payment coupon with your closing and mortgage documents. Use this stub to make your first payment. Please be aware, however, that it is common practice of national mortgage lenders to sell a homeowner’s mortgage after closing. What this simply means is that you will make your payment to another lender. If your mortgage is sold, you will be notified by mail. 12 | Edition July 2019