Getting started on your home purchase
Buying a home can be a complex process. With a little preparation up front, you can save a lot of time and hassle.
In order to complete a loan application, all borrowers need to provide the following personal information:
- Most recent paystubs for one month
- W2s from the last two years
- Signed copies of your last two years' Federal tax returns, including all schedules
- Homeowners insurance company name and number
- Most recent asset statements for two months (checking, savings, investment, retirement)
Understanding costs involved
In addition to your down payment, here is a brief rundown of fees that could be associated with your new mortgage:
Application Fee – Charged by the lender to process your loan application.
Appraisal Fee – Charged by the appraiser to determine the current value of the property.
Credit Report Fee – Charged to provide your credit report to your loan officer and/or lender.
Discount Points – Paid to the lender to secure a lower interest rate.
Escrow Fee – Charged by the closing agent (escrow and attorney) to ensure the close of your transaction.
Notary Fee – Charged by the Notary Public to notarize your loan documents.
Origination Fee – A fee charged by the lender to process, underwrite, fund, and provide administrative services on a loan.
Private Mortgage Insurance (PMI) – PMI is usually required when the down payment on a conventional loan is less than 20 percent of the home’s purchase price.
Title Search/Title Insurance Fee – Charged by the title company to check whether the property is free from liens or title defects.
Underwriting Fee – Charged by the lender to evaluate your loan file.
Miscellaneous Fees – Document preparation, recording and tax service are other fees which may fall under this category.
VA, USDA and FHA loans may have other associated costs.
Let us help you evaluate your personal situation and assist you in finding the loan program that works best to meet your goals and needs.