What Constitutes Closing Costs?
Closing costs are expenses that cover fees associated with the transfer of property ownership, fees paid to state and local governments, and the costs of obtaining a mortgage loan. Some of these fees are negotiable, and could be paid by either the buyer or the seller. Some costs are one-time fees (non-recurring closing costs, such as title search, termite inspection, appraisal, etc.); while other fees such as homeowner’s insurance or property taxes are things you will expect to continue to pay on a regular basis as a homeowner. As part of the loan selection process, your mortgage...
Read MoreAvoid Changes to Your Financial Profile During the Loan Process
Once your loan package has been sent to the lender, there are a number of things you should avoid doing that will change your financial picture, especially now that underwriting guidelines have become strict. Remember, the lender is looking for stability and consistency. If you want the best interest rate, keep that in mind. Here are a few things to consider: The lender is looking to see what your source of down payment is. Your lender will most likely ask you to provide proof of your liquid assets. This includes bank statements for checking and savings accounts, verification of investments,...
Read MoreBe Prepared For Your Loan Application
As mortgage rates are at historical lows, people are taking full advantage of the opportunity to refinance or purchase a home. Because of this, the amount of time between the application and the closing is getting longer. One way to help make sure the process runs smoothly is to make sure that you have the following documents ready to go: The most recent month’s worth of paystubs. The stub should include your social security number and your year to date income. Proof of income received, if any, from a secondary source such as alimony or VA benefits. The previous two years W-2s and federal...
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