March 3, 2024

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Transforming Houses Into Homes

7 Things to Know and Do When Buying a House and Applying For a Mortgage Loan

While looking for your new home make sure you pay attention to the neighborhood. Noticing how the neighbors live may help you make a decision concerning the purchase of your new home.

At sometime while viewing the home make sure you walk the yard. Check for damage in any fencing and what repair cost may be to any outside structures. These should not be deal killers but you need to know the cost of future repairs.

While you are doing your outside inspection be diligent to check the exterior structure of the home. Check for rot around the windows and soffit as well as the fascia.

Inside the house, make sure the floor plan is satisfactory to your families needs. Interior style,color scheme, carpeting, floors and wall coverings are all things to pay attention to. All of these items can be changed if you do not like them, however, the cost adds up and must be considered.

These closing costs listed below are typical in Florence, S.C. These quotes are an estimate and not guaranteed as each loan company, insurance agent, and attorneys have different charges. These costs do not include “prepaid items” (see below)

•Loan Origination Fee: 1{7fcbeda410c9f02a886f83a59a5af911565ec7141a170d397df667872a958d9e} of loan amount
•Underwriting Fee: Varies
•Flood Certification Fee: $16-$20
•Credit Report: $15-$50
•Appraisal: $350
•Tax Service Fee: Varies
•Survey: $265
•Home Inspection: $200-$300
•Pest Inspection: $165
•Attorney Fee: $375-$500
•Title Insurance: $3 per $1000 plus $25
•Clerks Copy Fees: $25
•Recording Fees: $10-$25
•Courier Fees: $25-50
Once again, these are typical fees and closing costs may vary, however, it has been my experience that closing costs run between $2000 and $4000. This will vary depending on the loan amount.

The lender will request some personal information from the borrower. Below is a list of items needed for a credit application:

•Employment information including time on the job
•Addresses for two full years
•Gross monthly income
•W-2s, if available
•Proof of pensions, retirement, disability or Social Security
•Proof of income from rentals, investments, etc.
•Proof of child support or alimony paid/received
•Year to date pay stub

If self-employed:
•Two years 1040 Tax Returns
•Current year profit and loss statement
Creditors
•Each creditor’s name, address and type of account
•Account numbers
•Monthly payments and approximate balances
•Amount of child care expenses

Banking
•Names and addresses of saving institutions
•Account numbers for all accounts
•Type of accounts and present balances
Miscellaneous

•List of assets in stocks, bonds, land
•Life insurance cash value (documented if used as cash down payment)
•If applicant is selling a home, a copy of sales contracts
•Buyers Social Security numbers
•Veterans – Certificate of Eligibility & DD-214
•Sells Agreement
•Copy of contract
•Instructions on how appraiser is to gain entrance

As the loan process moves forward the mortgage company will almost always ask the buyer to update information such as check stubs and or bank statements just before closing. This is just part of the normal process and there is no reason to get nervous about them asking.

Things to consider during the Mortgage Loan Process

Once a buyer has been approved for a mortgage loan there are some precautions he or she should follow. It is imperative that anyone whose name is on the loan application not allow a credit check by another business such as a car dealer or another loan company during the loan process. A borrower should never try to gain more credit while in the mortgage loan process as this is likely to slow down or even cause a denial all together. Applying for more credit will change the buyer’s whole financial picture and the mortgage company will cease the process until they are fully assured the the applicants “debt to income” percentages are within limits. For security reasons the mortgage company may wait 90 days or more to begin the process all over again. Buying a new home can be a very exciting and wonderful experience, however, it must be done the proper way. If a buyer follows the above guidelines the mortgage borrowing process will go much smoother.

Happy House buying!