Getting started on your home purchase
Buying a home can be a complex process, but it doesn’t have to be hard. With a little preparation up front, you can save a lot of time and hassle.
In order to consider a loan application, all lenders need personal information to verify employment for you and your co-borrower (if there is one). Information regarding debts and assets also is required.
To expedite the paperwork process, gather the following items:
- 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
Within three days of your loan application, your loan officer must provide you with a Good Faith Estimate (GFE) of closing costs.
In addition to your down payment, here is a brief rundown of fees that could be associated with your new mortgage:
Application/Processing Fee – Charged by the loan officer to process your loan application. (Processing fee does not apply to New Jersey Consumers.)
Underwriting fee – Charged by the lender to evaluate your loan file.(Underwriting fee does not apply to New Jersey Consumers.)
Commitment fee – imposed by a lender as consideration for binding the lender to make a loan in accordance with the terms and conditions of its commitment and payable on or after acceptance of the commitment.
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.
Notary Fee – Charged by the Notary Public to notarize your loan documents.
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 goals and needs.