Time Saving Tips for Getting Started on Your Home Purchase
Time Saving Tips for Getting Started on Your Home Purchase
Buying a home or second home today can be a complex and stressful process, but it doesn’t have to be. With a little preparation, you can save a lot of time and hassle by having all of your documents ready when your mortgage professional needs them.
Understanding the process and the items required today for a mortgage certainly helps save a lot of time and energy.
To start with, the lender will need personal information to verify employment for you and your co-borrower (if there is one). They will also need Information regarding all of your debts and assets in order to expedite the paperwork process, start gathering the following items:
• Most recent pay stubs for one month.
• W2's from the last two years.
• Signed copies of your last two years
• Tax returns, including all schedules that were filed.
• Homeowner's insurance company name and number. (If you already own a home)
• Most recent bank statements for two months. (All pages)
• Most recent statements from any retirement and investment accounts for two months. (All pages)
So, what costs are involved?
Within 3 days of your application, your Loan Officer must provide you with a good faith estimate of closing costs. Along with any down payment you may have to pay closing costs at your closing as well. This is a brief rundown of some of the fees that could be associated with your new mortgage:
• Application/Processing FH -Charged by the loan officer to process your loan application.
• Appraisal Fee-Charged by the appraiser to determine the current value of the property.
• Closing Fee - Charged by the closing agency (escrow, attorney, and tittle) to ensure the close of your transaction.
• Credit Report Fee - Charged by the credit reporting agency to provide your credit report to your loan officer and/or lender.
• Title Search/title Insurance Fees - Charged by the title company to ensure the property is free from liens or title defects.
• Origination Fee - Paid to the originator to obtain a lower interest rate. This is usually expressed in the form of points. One point equals 1% of the loan amount.
• Discount Points- Paid to the lender to secure a lower interest rate.
• Miscellaneous Fees-VA and FHA loans may have other fees associated with them. Private Mortgage Insurance (PMI), document preparation, notary, recording and tax service are other fees which may fall under this category.
We can help you find a mortgage lender to help evaluate your personal situation and assist you in finding the loan program that works best to meet your individual goals and needs. Just give us a call!
REMAX By The Sea
Bethany Beach DE 19930
Direct: 302.537.3171
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