McLean Mortgage Corporation Brings You
FAQs
How can we help?
There’s a lot that goes into the mortgage process, we know you have questions and we want to provide you with the answers!
We understand that everyone is in a different financial situation and we aim to find solutions that fit your unique needs.
Have more questions?
Get in touch! If you are not able to find the answers you’re searching for, contact us and we can set you up with one of our mortgage experts for a free consultation.
Servicing Questions
Will I receive a payment coupon or statement?
Within your closing paperwork you will find two mortgage coupons provided for your convenience. A few days after settlement you will also receive a Welcome Letter that contains a mortgage statement, and return envelope. Mortgage statements are sent out on the 15th of the month for payments due to McLean Mortgage Corporation.
What happens if my loan is transferred to a new investor but I made a payment to McLean?
If we receive a payment that is due to a new investor we will forward the payment the day it’s received. Due to processing, and mailing time it could take up to 10 days before it’s reflected in your account. However, by RESPA law you cannot be counted as late within 60 days of the transfer of your mortgage. If you have a question contact our servicing department at (855) 288-1100 or servicing@mcleanmortgage.com.
How will I know my loan has been transferred?
When your loan is transferred you will receive a Goodbye Letter from us with information for the new investor. You will also receive a Welcome Letter from the new investor. If in doubt where you should make your payment please contact our servicing department at (855) 288-1100 or servicing@mcleanmortgage.com.
When my loan is transferred will my insurance company be notified?
Yes! We will send your insurance company updated information so the correct mortgage company is billed.
I received a letter that says McLean Mortgage but I don’t know if it’s from you?
You may receive correspondence that appears to come from McLean Mortgage Corporation. Marketing companies mine public records of new mortgage holders to sell related products and services. If you do not see our logo on the correspondence, it is not from us.
We take the protection of your information extremely seriously. If you have any questions about something you’ve received, please don’t hesitate to contact us at (855) 288-1100 or servicing@mcleanmortgage.com.
Frequently Asked First Time Buyer Questions
At what point in the process should I apply for a mortgage?
Don’t Wait! The best time to apply is before you select a home. If you speak to a Mortgage Advisor before you start the home search, a prequalification can help you determine a price range that fits your budget. Once you are ready to start putting in offers, a preapproval will let sellers know you are serious about purchasing.
How long will it take for a loan to be approved?
After you have submitted your application, loan approval typically takes just a few days if the documentation we ask to be provided is complete. The more complete the information, the more quickly we can act.
What is the difference between a preapproval and prequalification?
A prequalification is an opinion on whether you are qualified for the mortgage and does not mean that the information provided has been verified or the file has been underwritten. A preapproval means that the relevant information has been verified and the file has been underwritten and approved. The file typically would be approved subject to a ratified sales contract, satisfactory appraisal on the property selected and locking gin a rate and loan program.
What is the process after the loan is approved?
Assuming you have a sales contract signed for a new home, the next step is to make sure all conditions are clear. Many of these conditions are standard and are provided by third parties, such as obtaining an appraisal and clear title. The quicker these conditions are received, the smoother the settlement process.
When can I lock in a rate on the loan?
Typically you can lock in the rate after the application is complete and the sales contract is ratified. Rates change daily and often more than one time per day. We will keep you informed as to how the markets are changing.
What is the difference between a home inspection and a home appraisal?
A home inspection can be completed at the option of the purchaser. Your Realtor® will order the home inspection on your behalf to determine the condition of the home and its major systems. A home appraisal is required for home financing and is ordered by the lender to determine the value of your home.
How much money will I need at closing?
You will need money to cover the down payment, closing costs and escrows. The closing costs are itemized on the Loan Estimate, a form required by the government that we will provide. From this number, you can subtract your deposit that is being held by the Realtors and any closing cost credit paid for by the seller.
Can I borrow the money I need for closing, for example, place a charge on my credit card?
Each program is different with regard to how you can purchase the funds necessary as well as the cash reserves needed after closing. We advise you not to incur any additional debt until you close on your home, at least not without talking to us first. A car or furniture purchase could change your qualification status.
What is included in my mortgage payment?
We refer to the payment as “PITI.” This term stands for Principal, Interest, Taxes and Insurance. Principal and interest refers to the total payment on the loan. The tax and insurance payments are for bills that will be due in the future. Money is put aside, or escrowed, for these bills. Insurance is typically for a “homeowners policy” to protect your house, but there may also be monthly mortgage insurance charges for certain loans with less than a 20% down payment.
Will I get a copy of the appraisal of the property?
Yes, you will be provided with a copy of your appraisal after our quality control review has confirmed the appraisals’ accuracy.
Will I get a copy of my credit report?
Yes, we will be able to provide you with a consumer copy of your credit report. The Fair Credit Reporting Act requires that this information cannot be shared with other parties to the transaction and therefore it must be provided to you directly.
How can I best prepare for settlement or "closing"?
Closing is an important day because you officially become a homeowner. It is best to prepare yourself ahead of time for settlement to ensure a stress-free day of celebration. Be sure to confirm the date, time and location of the closing with all parties. Often the date and/or time may change, and it is important that everyone is on the same page. It is also important to review the Closing Disclosure ahead of time, as it summarizes the details of the transaction and it is important to get any questions answered before the settlement takes place.
What do I need to bring with me to settlement?
Remember to bring a government-issued picture ID with you to settlement and to bring any funds due specified in the Closing Disclosure in the form of a cashier’s check made out to the settlement company (if the funds are not being wired). Finally, there will be many documents to sign at the closing table and familiarizing yourself with these forms ahead of time will make the settlement much more enjoyable.
FAQ's About New Construction
What is a construction-to-permanent loan?
A construction loan provides mortgage funds to acquire or refinance land, as well as provide construction funds to build a new home or to renovate an existing home on that property. A construction-to-permanent loan will also provide funds for the permanent mortgage.
What types of construction will the lender finance?
McLean Mortgage Corporation offers financing for both primary residences and second homes within our market area for new homes built on site and significant renovation projects.
Can I act as my own contractor?
The owner/borrower providing contracting services on their own home is not permissible. A Class “A” Licensed Contractor is required. The contractor will be subject to review of credentials by McLean Mortgage Corporation and must complete a registration process as well.
What kind of financing is available?
You may select from a wide variety of fixed and adjustable rate mortgage options with various rate options, subject to qualification standards. Please discuss these options with your mortgage advisor.
How long is the construction period of my loan?
The construction period is twelve (12) months from the date of closing.
Can my construction loan be extended?
The original twelve (12) month construction term can be extended by submitting a written request to McLean Mortgage Corporation. That request must specify the time period needed to complete construction. Extension(s) will be at the sole discretion of lender, and will be subject to a fee of one half of one percent (.50%) of the loan amount for a 90-day extension period.
Can I use any builder/contractor?
The builder/contractor selected will have to provide required financial information and proper credentials, which are subject to review and approval. The submission will include builder profile information, evidence of contractor license and appropriate insurance. However, McLean Mortgage Corporation does not warrant the builder’s workmanship. The selection of the general contractor/builder with whom the contractual agreement is made is at the sole discretion of the borrower/property owner.
Can I make changes to the house plans/specs during construction?
Your house must be built in accordance with the plans & specs submitted with the original loan application. Any significant changes that would potentially alter the appraised value must be re-evaluated by the appraiser who performed the original appraisal. Any changes which may result in an adverse effect on the appraised value is not permissible.
Will the lender release funds as required by my contract agreement with the builder?
The contract agreement will not determine the release of funds. The lender advances funds in accordance with the percentage of completion of work, based on a site inspection and using the established draw form. These procedures are specified within the terms and conditions of the construction loan agreement.
Will the lender advance construction funds prior to work being completed?
Funds are only released for work which is completed. Funds are not advanced for other purposes, including the purchase or storage of materials.
How much advance notice does the lender require for draw requests and construction inspections?
A minimum of three business (3) days advanced notice is required. This allows sufficient time to schedule the inspection, order a title exam and process the funding.
Can I pay off my construction loan with my permanent mortgage before the construction maturity date?
You may close on the modification at any time, provided that the house is 100% complete, an occupancy permit has been obtained, and final credit qualification has been established. Please contact your mortgage advisor should this occur and express your desire to convert to your permanent loan.
Will the lender pay real estate taxes and insurance that may be due during the construction period?
It is the sole responsibility of the borrower/owner to pay taxes and insurance during construction. Escrow accounts for real estate taxes and insurance will be established at the time the permanent mortgage is in place. Your initial tax and insurance escrow contributions will be collected from you at that time.
What payments will I make during the construction period of my loan?
Interest-only payments will be billed monthly. No principal payments are collected during the construction period. The calculation of interest-only payments are based on the outstanding balance of funds advanced to date. A monthly interest statement which will be provided will reflect a payment due date of the 1st day of each month
Can interest payments be financed into the loan?
McLean Mortgage Corporation will consider requests which include a reserve for interest payments. The interest reserve must be included in loan calculations. The amount of interest reserve, and whether or not it is allowable, is limited to the restrictions of the loan-to-value ratio.
What interest rate is charged on the construction loan during construction?
Interest is based on the Prime Rate of Interest as published by the Wall Street Journal and floats with this prime index. The loan will have a margin which is added to the prime rate. Regardless of the index and the margin, the loan will have a floor rate. Please consult with your mortgage advisor to get a current quote for the construction loan.
Can the permanent loan interest rate be locked during construction?
Extended rate lock options are available on certain construction loan products. Please consult with your mortgage advisor to determine what options are available.
If the permanent loan interest rate floats during construction, when can it be locked?
If the rate on the permanent loan is floating while the home is being constructed, the interest rate can be locked as the project nears completion. The term of the lock must be long enough provide for the completion of construction, as well as time to close on the permanent loan.
The home is finished, what transpires next?
When notification is received that the project is nearing completion, it will be important to speak with your mortgage advisor. It will likely be necessary to update some of your credit information and a new appraisal will be required. Note: Any adverse change in your financial condition or in the value of the subject property could affect your final loan approval and may hinder your ability to modify the construction loan to a permanent loan.
Will there be more costs to pay at the Modification (One-Time Close)?
The associated recording fees for the Loan Modification Agreement will have already been collected at the initial closing. The required deposits to establish the escrow accounts for taxes and insurance will be collected at the time of modification.
Will there be more costs to pay at the Refinance (Two-Time Close)?
There will be associated costs customary to a refinance transaction. However, there are potential discounts which may be offered by using the same lender and title/settlement agent. Additionally, the required deposits to establish the escrow accounts for taxes and insurances will be due at closing.
Can I waive escrows and opt to pay my own taxes and insurance?
Escrows may possibly be waived if allowed by the loan option selected. Typically the loan-to-value must be 80% or lower, the property must be your primary residence and waiving escrows must be allowed by federal and state regulations.
