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Quick Tips for Getting Started on Your Home Purchase

Quick Tips for Getting Started on Your Home Purchase

1040 screenshotBuying a home can be a complex 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.

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 paystubs for one month.

– W2s 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.

– Most recent bank statements for two months.

– Most recent statements from any retirement and investment accounts for two months.

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 will 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 Fee – 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, title) 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.

Let us help you evaluate your personal situation and assist you in finding the loan program that works best to meet your individual goals and needs. This is brought to you by: Pamela Jackson, Mortgage Banker, PHH Home Loans
Phone: (630) 881-4378  Fax: (630) 757-6622  License:NMLS#346456  [email protected]
www.phhonline.com/pamelajackson

Rate on 30-Year Mortgage at Two-Year High

That is right. Increasing mortgage rates (currently at 4.51 percent) are all the more reason to buy before rates continue to increase, if you will be taking out a home loan.

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Mortgage buyer Freddie Mac said Thursday that the average on the 30-year loan jumped from 4.29 percent the previous week. Just two months ago, it was 3.35 percent — barely above the record low of 3.31 percent.

The average on the 15-year fixed mortgage rose to 3.53 percent from 3.39 percent last week. That’s the highest since August 2011.

Remember: the average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount and not all lenders charge the same fees.

Contact our great Mortgage Advisor in our full-service office, Rebecca Mott, at Coldwell Banker Home Loans / PPH. Her number is 708-364-6759 (also the number in the calendar above).