Lawyer Breaks Down 4 Types of Loan Closings

TL;DR

This video discusses the four types of loan closings in real estate: residential purchase, commercial purchase, refinance, and new construction.

Transcript

hello everybody I'm Tiffany Weber with Thomas and Weber of Mooresville North Carolina real estate law firm hit the nail on the head hey everybody welcome back to the North Carolina real estate show I'm Tiffany Weber as you just heard so Ryan is joining us today to talk about the different types of loan closings so we'll confine it to just four diff... Read More

Key Insights

• 👶 Different types of loan closings include residential purchase, commercial purchase, refinance, and new construction.
• ☠️ Residential purchase loans can be conventional, FHA, or adjustable rate mortgages.
• 👨‍💼 Commercial loan closings involve properties used for business purposes or rented to businesses.
• 🤯 Refinancing replaces an existing loan with a new one, and borrowers have a three-day window for changing their minds.

Questions & Answers

Q: What is a residential purchase loan closing?

A residential purchase loan closing involves a buyer and a seller, where the property is intended to be the buyer's primary residence. It can involve different types of loans, such as conventional, FHA, or adjustable rate mortgages.

Q: What are commercial loan closings?

Commercial loan closings are for properties used for business purposes or rented to other businesses. They typically have a five-year term with an amortization period of 20-30 years. At the end of the term, there's a balloon payment or options for renewal or modification.

Q: How does refinancing work?

Refinancing involves replacing an existing loan with a new one. It requires signing new loan documents and starting the loan term over. It can be done for primary residences, and borrowers have a three-day window to change their minds for cash-out refinance.

Q: What is a new construction loan closing?

A new construction loan closing involves financing the building of a new property. Typically, the loan covers the purchase of the land and the construction process. It can be done through a construction permanent loan, with interest-only payments during the construction period.

Summary & Key Takeaways

• The video explores the different types of loan closings in real estate, including residential purchase, commercial purchase, refinance, and new construction.

• Each type of loan closing has its own specific requirements and considerations.

• Refinancing involves replacing an existing loan with a new one, while new construction loans finance the building of a new property.