Monday, October 11, 2021 / by Karri Bedor
Common Closing Costs:
Typically, buyers will need money for a downpayment and itemized closing costs. Your loan type will determine the amount needed for a downpayment. If you are able to put down at least 20% on your home mortgage, you will save due to the fact that you are not required to pay Private Mortgage Insurance (PMI). The amount you pay for PMI is determined from the amount of the loan. The amount is determined based on the estimated value of the home and your downpayment.
Some other costs home buyers may be subject to include:
Document preparation fee
Deed recording fee
These costs vary dramatically depending on the loan program you choose. It is usually a good idea for homebuyers to budget an extra $1500 to $3,000 for closing costs.
Sellers can expect costs as well. Some of these may include:
Wednesday, October 6, 2021 / by Karri Bedor
What Happens at Closing?
All deadlines and contingencies revolve around closing. It is the day buyers are handed the
keys to their new home. For sellers, it can be advantageous to pre-sign all necessary
documents to expedite the funding process on the day of closing.
Fees for obtaining a mortgage are always paid by the buyer. Application fees, points, loan
origination and underwriting fees as well as escrow deposits for homeowners insurance and
property taxes are some that could be included in final closing costs. Your lender can give you
estimates of costs and will provide you with a closing disclosure 3 days prior to the day of
closing with itemized costs. Buyers commonly pay more closing costs than sellers because
many of the costs incurred come from the mortgage being obtained.
The closing agent will go through several documents and explain what they are to make sure
you understand and agree before signing each one. Having seen your closing disclosure in
advance, . ...
Tuesday, September 28, 2021 / by Karri Bedor
What’s A Final Walk-Through?
One to three days prior to closing, buyers go back to the home for what is called a “Final Walk
Through”. As much as buyers want to start deciding where to put their furniture and how they
will decorate, this is really a time to focus on the following:
1. Are the repairs you asked for completed to your satisfaction? These would be items
you negotiated after the inspection (most likely). Be sure the owner has provided
any warranties and you have all repair receipts of work completed.
2. Are all items listed as INCLUSIONS on the offer present on the property and in
3. Check bathrooms to be sure there is no standing water around the base of the toilet or
under the sink drain area. Flush toilets to make sure they aren’t running. Turn
on faucets to verify they have hot water and are not leaking when turned off.
Don’t forget the showerhead.
4. Check the kitchen for leaks under the sink, by th/ ...
Monday, September 20, 2021 / by Karri Bedor
What is a Closing Disclosure?
The lender is required to give the buyer what is known as a
Closing Disclosure at least three business days before you close
on the mortgage loan. It is important that the buyer receives this
at least three days prior to closing, NOT counting the day of
closing, or the buyer will not be able to close as planned. The
purpose of this disclosure is to allow the buyer time to review the
line items on the final disclosure and compare those costs to the
terms and costs of the Loan Estimate that was initially provided
by the lender. The three days also allow time to ask the lender
any questions before closing.
Although the Loan Estimate outlined the approximate fees you
would pay for your mortgage, the Closing Disclosure Form uses
the actual numbers. This is why you must read it carefully and ask
about anything you don’t understand.
Let’s look at an overview of the main components of the Loan
Disclosure. Loan Term is the tee ...
Tuesday, September 14, 2021 / by Karri Bedor
What is a Loan Commitment
In the Offer to Purchase, there is a “Financing Commitment Contingency” that has a timeline based on the number of days from the offer date to the closing date. Typically, the loan commitment is due approximately 5 days before closing and comes after the appraisal.
So what exactly is a loan commitment?
A loan commitment is a lender's promise to offer a loan or credit of a specified amount to a borrower. Also called a commitment letter, it includes all of the terms and conditions of the loan. www.bankrate.com
Your loan goes through a process called underwriting.
An underwriter will approve or reject your mortgage loan application based on your credit history, employment history, assets, debts, and other factors. It's all about whether that underwriter feels you can repay the loan that you want… But a seasoned loan originator is an integral part of the whole process; ...