Savings Account Archives - Hanover Mortgages

January 9, 2022

Home listing prices surge â Realtor.com

Additionally, home prices of a typical 2,000 square foot single-family home increased at an even faster pace, up 18.6% year-over-year.

“December data offers a fitting finish to the frenzy of the past year,” said Danielle Hale, chief economist at Realtor.com. “Annual listing price growth hit double-digits again nationwide and in many of the hottest markets, after four months of single-digit pace this fall.”

According to Realtor.com data, more than one-quarter (13) of large markets posted double-digit yearly home price gains – and up by more than 20% in Las Vegas, Austin, Tampa, and Orlando.

“Despite buyer challenges like rising prices, limited inventory and fast-paced sales, real estate activity maintained a brisk pace throughout 2021 as factors like low mortgage rates enabled home shoppers to persist,” said Hale. “With rate hikes now on the horizon, buyers may be trying to get ahead of higher monthly housing costs, in turn driving up competition and prices.”

Hale added that Realtor.com’s 2022 forecast “anticipates affordability challenges this year, but also that trends like rising incomes and workplace flexibility could offer some Americans a better shot at finding a home.”

Source: mpamag.com

January 9, 2022

Fannie Mae Aims to Make Home Loans More Accessible – The Wall Street Journal

Mortgage finance giant Fannie Mae is making it easier to include rent-payment history as part of the mortgage approval process, a move intended to help borrowers with limited credit histories get better access to home loans.

Fannie Mae said that starting next month it will help lenders factor in borrowers’ history of rent payments when weighing those applicants’ qualifications.

Source: wsj.com

August 23, 2021

Top Originator: Career lessons I learned the hard way

Things eventually turned around after those tough times. During the mortgage meltdown, Castle was one of the lucky ones who did not experience the tangle of problems linked to the housing market crash.

“Texas didn’t suffer as much as other parts of the country. I firmly believe, when times get tough, people go to professionals they trust and have done business with before,” she shared. “My loyal customers continued to support my business by referring their friends to me.”

Read next: Top Originator: Robert Nuñez on making a solid loan recommendation

Castle said the highlight of her career came when she learned to create processes and systems for her business. In 2011, She got to put those processes and systems to work when she opened a Guild Mortgage branch in Sherman, Texas, with her business partner. While growing the branch, Castle found her passion for hiring, training, and empowering others to succeed in their own careers in the mortgage industry. Guild then asked her to coach other branch managers on how to implement those business processes and systems in their own branches. Now, Castle spearheads the company’s training and coaching efforts in the North Texas region.

“From the very beginning of my career, a thorough understanding of the process and programs was the foundation of my business,” Castle said. “I feel that my ‘Plus 1’ is educating customers and exploring all their options to help them build financial wealth, even if they think a 20% down conventional loan will work for them. I take an approach of looking at the big picture so we can explore what other ways there may be to save money or pay off debt faster by putting less cash down upfront while freeing up household cash flow. Presenting a total cost analysis shows them all their options, and they can choose which loan program is best for their needs. Educating customers has been my forte because I believe this allows me to stand out as someone who genuinely cares about their well-being.”

Source: mpamag.com

August 23, 2021

FHA Home Loan: Requirements and Rates – Chase News & Stories

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Source: chase.com

August 23, 2021

UWMâs Mat Ishbia reveals firmâs crypto ambitions

Read next: UWM’s CEO Ishbia in jumbo loan push

According to the Detroit Free Press, the Pontiac-based lender could start accepting one or more cryptocurrencies later this quarter or within the fourth quarter.

“I think we’re starting with Bitcoin, but we’re looking at Ethereum and others,” Ishbia told the Free Press. “We’re going to walk before we run, but at the same time, we are definitely a leader in technology and innovation, and we are always trying to be the best and the leader in everything we do.”

Ishbia also noted that, while that’s the plan, there are no guarantees as they are “still working through some details.”

Read more: United Wholesale Mortgage announces Q2 financial results

Source: mpamag.com

August 23, 2021

Borrowers with not-so-perfect credit may be eligible for FHA home loans – Washington Post

In addition, the debt-to-income ratio requirement is looser, May says. The debt-to-income ratio refers to the minimum payment on all recurring debt such as your mortgage payment, car loan, credit cards and student loans, compared with your monthly gross income.

Source: washingtonpost.com

March 10, 2021

Will eClosings be worth their ROI post-pandemic?

When the pandemic struck, many mortgage lenders across the country began a process that’s been talked about for years: the adoption of eClosings. Talked about so long as a ‘nice to have’, the ROI calculation for many lenders wasn’t there over the past decade. They could do business on paper, as they always had done, and there wasn’t a driving need to realign their processes, even if some of the biggest lenders were getting on board.

The pandemic upended that and now eClosings are a ‘must-have’ for any lender. If the ROI calculation has swung during the pandemic towards eClosings, though, a new question arises: will eClosings be worthwhile in a post-pandemic world?

To find out, MPA spoke with Michael Chaney (pictured), national sales manager at DocMagic. He explained that eClosings will likely remain an essential part of any mortgage lender’s operations for years to come. The functionality they offer in terms of customer experience and scalability into markets where a lender might not have a physical presence, along with the contingency they represent in the face of another significant interruption, has already proven its value. Even for those lenders looking to return to a more in-person process, he explained that a hybrid eClosings model could prove to be the ideal solution.

Adopting eClosings takes an investment of time and effort, however, Chaney believes that the technology has become absolutely essential. The ROI calculation, in his view, is pretty simple.

“Nobody knows what the future is going to hold,” Chaney said. “DocMagic has become so much more valuable to a lender now because another pandemic could happen at any point. We’re already hearing about strains of the virus that could prolong the pandemic. Everybody is focused on having this workflow at least configured and ready to go because they cannot have a stoppage of business ever again. It can’t happen.”

Read more: US mortgage rates reach six-month high

While big banks aren’t necessarily buying e-notes yet, Chaney explained that self-servicing lenders working with Fannie and Freddie should be ready to move on e-notes now. Moreover, he explained upfront that eClosings doesn’t automatically mean e-notes. Digitizing other core elements of the process can help mortgage lenders move faster on individual loans and scale more widely geographically. That’s where the hybrid model comes in.

It essentially digitizes the less important aspects of the closing process while leaving only the most essential documents to wet signatures. That model, Chaney explained, takes less time to train on and less overhaul of existing processes on the part of lenders. It also adds the feeling of security to a lender and borrower through tactile trust in a paper process.

The hybrid model too, will allow a far better customer experience, giving them the ability to review every document and ask questions up to the minute. That, in turn, will generate better referrals around how easy the lender was to work with. The digitized process, too, makes for a far cleaner closing meaning everyone’s happier at the closing table. Customers and mortgage professionals have shifted their expectations around digital service throughout the pandemic. The closings process is not exempt from that shift.

Switching to eClosings sounds like a daunting undertaking for many lenders. Chaney doesn’t mince words about that. He explained that overhauling so many lending processes to accommodate an eClosings platform like DocMagic can sometimes feel onerous for a lender. Yet by taking a more graduated approach through the hybrid model, some of those pain points can be minimized while the initial benefits are being felt.

Read more: Pending home sales dipped in January

In the short term, Chaney explained, these tools are becoming essential to ensure that neither this pandemic, nor a new unforeseen catastrophe, forces another interruption in business. In the long term, eClosings will offer scalability and levels of client service that are very likely to be the norm in the mortgage industry. He explained that any lender looking to get ahead of the industry needs to look closely at how a hybrid eClosings model can serve them in future.

“DocMagic’s got the enterprise platform that has everything that you need for a fully electronic process, but it’s also scalable from a hybrid level,” Chaney said. “It gives lenders that comfort factor of approaching the process on their own timeline. You won’t get this from another vendor, either. So many platform providers are just covering one part of the process but DocMagic owns it from cradle to grave. That’s so important to have as you look to take the next step in your business and ensure you don’t lose time ever again. Having a vendor that can provide this service from the start and can scale along your timeline is essential in today’s market.”

Source: mpamag.com

March 10, 2021

Can You Use A 203K Rehab Loan For An Investment Property? – The Mortgage Reports

203k loans for investors: A special use case

The FHA 203k rehab loan can be an affordable way to buy or refinance a home and refurbish it with a single loan.

This might make the 203k loan attractive to investors and fix-and-flippers. But there’s a catch.

These mortgages are limited to ‘primary residences,’ meaning the borrower has to live in the home full time. So they’ll only work for specific types of investment properties.

But there are ways to legally and ethically use a 203k loan for rentals and investments. Here’s how.

Verify your 203k loan eligibility (Mar 10th, 2021)

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FHA 203k loan for investment properties

There’s only one legitimate way to use a 203k loan for an investment property. You can buy and renovate — or construct or convert — a multifamily (2-4 unit) building and live in one of the units.

FHA allows borrowers to purchase 2-, 3-, and 4-unit properties and renovate them using the 203k loan.

To fulfill FHA’s residency condition, you’ll need to occupy one of the units yourself as your primary residence for at least 12 months.

You can rent out the other unit(s), and even use the rental income to cover your monthly mortgage payments.

Benefits of the FHA 203k loan for investors

While this might not be your first idea of an investment property, it can be a foot in the door for first-time investors who want to test out owning and renting properties.

It’s also worth noting that since you’d be buying the property as a primary residence, you get access to lower interest rates.

This means you’d have lower monthly payments and pay less interest overall compared to someone with a ‘true’ investment property mortgage.

Drawbacks

The main downside to this strategy is that you yourself need to occupy one of the units for at least one year.

After 12 months, you could rent out the unit that you live in and move on to purchase other real estate.

But FHA is not for serial investors. Once you use one FHA loan, you likely can’t get another one. You’ll have to secure other financing if you move out and buy again.

Also, keep in mind that you will be living side by side with your future tenants for those 12 months — some may consider this a downside while others won’t mind.

Another downside: FHA loans come with pricey mortgage insurance premiums (MIP) which borrowers are normally stuck with until they sell or refinance into a different loan program.

So there’s a lot to consider before going the 203k investment property route.

But for the right borrower, this could be a great strategy to finance and renovate their own home and a few rental units at the same time.

Verify your 203k loan eligibility (Mar 10th, 2021)

Can I use a 203k loan if I already own the home?

If you already bought your home, you can use a 203k rehab loan to refinance your current mortgage. This opens up another back door for investors.

You could potentially use the 203k loan to refinance your current home, make renovations, then move after one year and rent the house out as an investment property.

FHA allows you to rent out a home you still own with an FHA loan, as long as:

You fulfilled the one-year occupancy requirement
You moved for a legitimate reason, like a work relocation or upsizing to a bigger house for a growing family

This would only work for refinancing a home you currently live in and plan to keep occupying for at least a year after the loan closes.

If you already moved and kept your previous home as a rental property, you would not be able to use the 203k rehab loan since the home is no longer your primary residence.

How does the lender know if it’s my primary residence?

Some people make good livings by buying fixer-uppers and then selling them after rehab — aka “flipping” them.

A few might be tempted to take advantage of the 203k program by lying about their intention to live in the home. After all, how can the FHA prove in court what your intentions were when you made the application?

The main argument against this strategy is that lying on a mortgage application can be a felony that could see you in federal court.

Even an email to a contractor mentioning that you don’t intend to live there or other indication of your plans could show up in the court case.

And, repeat FHA buying would not be a viable long-term strategy.

FHA only allows borrowers to have one active FHA loan at a time, except in rare circumstances (for instance, if your work required you to relocate and you needed to buy another home near your new job).

In other words, borrowers cannot move once a year and continue financing new homes with FHA loans.

If you see yourself as an entrepreneur with a rosy future in real estate investing, set yourself up for success by choosing a legitimate financing option that keeps your options open in the long run.

Check your investment property loan options (Mar 10th, 2021)

About the FHA 203k rehab loan

The 203k rehabilitation loan is backed by the Federal Housing Administration (FHA), an arm of the U.S. Department of Housing and Urban Development.

This mortgage program lets you buy a rundown home — a fixer-upper — and then renovate it using a single loan that covers the purchase price and cost of repairs.

If that involves demolishing the existing structure down to the foundations and rebuilding, that’s fine under 203k loan rules, too.

203k renovation loans are only for necessary repairs to improve the structure or livability of the home. So the funds can’t be used to add luxuries like tennis courts or swimming pools.

And there’s one more important rule: You cannot do the construction or remodeling work yourself. The 203k loan requires you to hire a reputable, licensed contractor, unless you are one yourself and you work full-time as a contractor.

Limited vs. Standard 203k mortgage

There are two flavors of the 203k program: the “Limited 203k mortgage” and the “Standard 203k.”

The Limited 203k used to be called the “Streamline 203k.” As its new name implies, this version is more restrictive about the amount you can spend and the types of work you can do. But it’s also less complicated, hence its former “streamline” moniker.

The maximum repair budget for a Limited 203k loan is around $31,000 ($35,000 officially, but there are mandatory reserve accounts that eat into that sum). And you can’t make any structural renovations to the home.

On the plus side, these loans require much less paperwork and hassle.

The Limited 203k loan is typically best for current homeowners who want to make cosmetic repairs or renovations. It works a bit like a cash-out refinance, except you must spend the money on the home improvements you’ve listed.

A “Standard 203k loan,” by contrast, allows much higher budgets and would be better for home buyers purchasing serious fixer-uppers that need structural repairs.

FHA loan requirements

The basic requirements for 203k loans are similar to those for other FHA mortgages:

A 3.5% down payment — Based on your purchase price and rehab budget combined, subject to an independent appraisal
Minimum 580 credit score — It may be possible to dip below 580 if you have a 10% or higher down payment
Debt-to-income ratio of 43% or less — No more than 43% of your gross monthly income can normally be eaten up by housing costs, existing debt payments, and other inescapable monthly obligations such as child support

Although the FHA sets these minimum requirements, you’ll be borrowing from a private lender. And they’re free to impose their own standards.

For example, some mortgage lenders require a credit score of 620 or 640 for an FHA loan. If one lender has set the bar too high for you, shop around for other, more lenient ones.

Verify your FHA 203k loan eligibility (Mar 10th, 2021)

What repairs can you do with a 203k loan?

The FHA is putting up taxpayers’ money to guarantee part of your mortgage. So it’s not in the business of writing loans for luxury upgrades.

There are strict rules about the types of home renovations you can do and the amount of money you can borrow.

In fact, the total amount you can borrow for your home purchase and renovation costs is governed by current FHA loan limits, which vary depending on local home prices.

You can find the loan limit where you wish to buy using this lookup tool.

Maximum rehabilitation loan budgets

We already mentioned that a Limited 203k loan gives you a cap of around $31,000 on your rehab budget.

A Standard 203k lets you have as big a rehab budget as you want, capped only by your local loan limit minus the home’s purchase price.

Your total loan amount can be up to 110% of the property’s future value when complete.

But an appraiser will pore over your plans to make sure the final value of the home — after your projects are completed — will match the amount FHA is lending you.

What you can spend your rehab budget on

The Limited 203k is mostly intended for refreshing a home that’s a bit tired. So you can do things like:

Replacing flooring and carpeting
Installing or replacing an HVAC system
Remodeling a kitchen or bathroom
Fixing anything that’s unsafe
Making the home more energy-efficient

But you can’t use the money to do structural work, such as moving loadbearing walls or adding rooms.

The Standard 203k is very different.

You can do all the above and almost everything else, including serious construction work. Heck, you can even move the house to a different site if you get the FHA to approve your plans.

The 203k loan process

Limited 203k loans are pretty straightforward. Indeed, they’re easier than most to qualify for and set up.

But a Standard 203k isn’t like that. It may be your best path to your dream home. But there will be some extra hoops to jump through compared to a traditional mortgage.

Here’s the basic process to apply for and close an FHA 203k loan.

Find your best lender — You can save thousands just by comparison shopping among multiple lenders. They aren’t all the same! Make sure the ones you consider offer FHA 203k loans and are experienced in delivering them. You’ll want a lender familiar with the specifics of 203k loans to make sure the process goes smoothly
Get pre-approved — Pre-approval shows you your exact budget as well as your future interest rate. And you’ll get a chance to resolve any issues that arise in your application
Find the home you want — This is the fun bit. But download the Maximum Mortgage Worksheet PDF from HUD’s website because that will help you assess whether your plans are affordable
Find a 203k consultant — A 203k loan consultant will visit the home site, inspect the building, and then prepare a document outlining the project’s scope and specifications, along with a detailed cost breakdown for each of the repair tasks. He or she also prepares lender packages and contractor bid packages, along with draw request forms for stage payments
Find a licensed contractor — Some lenders maintain lists of approved contractors. And your consultant may help you find a reputable one. Make sure candidates have proven records for projects similar to yours and are familiar with FHA 203k jobs. Many contractors add serious delays to 203k approval because they can’t seem to complete the paperwork correctly
Have the home and project appraised — The lender will set this up for you
Begin work — Once the appraisal is approved, the lender should let you close. And your contractor can then begin work, drawing on funds in an escrow account

Limited 203k loans require the borrower to live in the home while repairs are completed. So if it’s a new home purchase, you’ll have to move in within 60 days, which is the norm for FHA loans.

Standard 203k loans, on the other hand, might include structural repairs that render the home unlivable while construction is going on. In this case, the home buyer is not required to move in right away.

Rehab loan alternatives for investment properties

FHA 203k loans aren’t the only way to buy and renovate a home with one loan. Fannie Mae’s HomeStyle Renovation and Freddie Mac’s CHOICERenovation products can do much the same thing.

Since the HomeStyle and CHOICERenovation loans are conventional mortgage loans, they won’t charge for private mortgage insurance (PMI) if you put at least 20% down. This can save home buyers a lot of money on their monthly mortgage payments.

However, like the 203k loan, these programs are only available for primary residences.

If you’re buying a ‘true’ investment property — meaning you won’t live in one of the units yourself — these loans aren’t an option.

But investors have other renovation loans to choose from.

Traditionally, you would buy a home with a mortgage and then borrow separately — perhaps with a home equity line of credit or home equity loan — to make improvements. Then you could potentially refinance both loans into one later on.

Another option is using a cash-out refinance on your investment property or primary residence and putting the cashed-out funds toward repairs or upgrades.

Of course, all these types of loans require you to have enough equity built up to cover the cost of repairs.

And if you choose to draw from the equity in an existing investment property, you’ll pay higher interest rates.

But the upside is that there are no rules about how the funds can be spent. So if luxury upgrades are on your agenda, this could be the way to go.

Explore all your options

FHA 203k loans are only available to a select group of investors: Those who will buy a multi-unit property and live in one unit themselves.

For real estate investors looking to fix-and-flip or build a large portfolio of investment properties, an FHA loan isn’t the right answer. But there are plenty of other financing options out there.

Be sure to explore all your loan options before buying or renovating a home. Choosing the right program and lender can help you achieve your goals and save money on your project.

Verify your new rate (Mar 10th, 2021)

Compare top lenders

Source: themortgagereports.com

March 9, 2021

MAXEX rolls out lending programs for green energy home improvements

Digital mortgage exchange platform MAXEX, in collaboration with JP Morgan, has launched two new sustainable lending programs for green energy home improvements.

The programs, MAXEX Sustainable and MAXEX Sustainable Express, are the latest additions to MAXEX’s Environmental, Social and Corporate Governance (ESG) business line launched in December. The firm said it aims to address the lack of low-cost financing options for green energy home improvements such as solar panels and geothermal units.

Read more: MAXEX, J.P. Morgan partner to “level the playing field” for minority-owned lenders

“MAXEX’s new sustainable lending programs expand financing flexibility by providing pricing incentives and enabling borrowers to finance green energy improvements into their mortgage balance at the time of purchase or refinance,” the company said in a press release. “This allows homeowners to amortize the cost of these green energy home improvements over a 30-year term at a below-market interest rate.”

The sustainable programs offer loan amounts ranging from $400,000 to $3,000,000 and are now available to MAXEX’s network of over 170 banks, regional banks, credit unions and independent mortgage lenders.

“MAXEX is passionate about leveling the playing field for Main Street banks by using our rapidly-growing digital exchange to deliver low-cost capital that drives social impact,” said Tom Pearce, chairman and CEO of MAXEX. “These ESG programs fill a significant void in the mortgage market by increasing incentives for green energy improvements.”

Source: mpamag.com

March 9, 2021

How to Prequalify for a Mortgage | Home Lending – Chase News & Stories

You have decided to buy a house, but don’t have enough money to make the purchase. Your situation isn’t unique, few people have enough cash on hand to buy a home. However, banks and mortgage companies offer loans, called mortgages, which provide people with the difference between what they have saved and the price of the home they wish to purchase.

While many people find the home they want and then look for a mortgage, it’s a good idea to look at your mortgage options first. It’s important to know how much you’ll be able to borrow before you find a house.

Check your credit score

The first place to start is reviewing your credit report and getting your credit score. Check with your bank or your credit card companies as they’ll often provide these for free. And each of the three national credit rating agencies, Equifax, Experian, and TransUnion are required to provide you with one free credit report per year.

You can request a report by going to annualcreditreport.com, or by calling the credit reporting agencies. If you’re planning to purchase the home with your spouse or another person, they need to request and review their credit reports as well. Review your credit reports for any incorrect information and, if you find any, contact the credit reporting agency to request a correction.

Check your credit score, which is a number between 300 and 850. A higher score not only improves your chances of getting a mortgage loan, but may also help you qualify for a lower interest rate.

Don’t wait until you have found the home you want before looking for a mortgage. This will give you time to improve your credit score by reviewing your credit report for accuracy, paying your bills on time, and reducing your balances on your credit accounts.

Know your debt-to-income ratio

All of your monthly payments toward your existing and future debts should usually be less than 43% of your monthly income. However, the amount you qualify for based on this calculation may not be suitable for you. You should review your personal situation and work with a financial advisor to decide how much you can comfortably afford. We’ll verify your income during the application process. To calculate your debt-to-income ratio, divide your monthly payments by your monthly gross income.

Use this formula to get an idea of your debt-to-income ratio: A/B = debt-to-income ratio:
A= Your total monthly payments (such as credit cards, student loans, car loans or leases; also include an estimated mortgage payment).
B= Your average monthly gross income (divide your annual salary by 12).
For example, if your monthly income is $5,000 and your monthly debts and future expenses are $1,000, your debt-to-income ratio would be 20%.

If your debt-to-income ratio is more than 43%, you still may be eligible for a mortgage if another person (such as a spouse, relative or someone who lives in the home) completes the application with you. We’ll ask you for the co-applicant’s information during the application process.

Starting the process early might give you time to pay off some credit card balances or smaller loans, which can reduce your debt-to-income ratio and possibly improve your credit score.

Your down payment

Putting a higher amount of money down may lower your interest rate and build equity in your home quicker. If your down payment on a conventional loan is less than 20%, you must pay private mortgage insurance (PMI), which covers the lender if you stop paying your mortgage and default on your loan. The yearly cost of PMI is about 1% of your outstanding loan balance and is added to your monthly mortgage payment. You can request to have PMI eliminated once your outstanding balance reaches 80% of the original loan amount.

Some loan types may require less of a down payment, such as only a 3% to 5%. Federal Housing Administration (FHA) loans require a 3.5% down payment, while the U.S. Department of Veterans Affairs (VA) loans may not require any money down.

Going to a lender to get pre-qualified

Once you feel you’re ready to buy a house, getting the right mortgage is the next important decision you’ll make. To be sure you’re getting the best deal, talk with multiple lenders and compare their mortgage interest rates and loan options see types of mortgages.

With pre-qualification, the loan officer will ask for information about your income, job, monthly bills, amount you have available for a down payment, and possibly some other information. They will then provide you with an estimate.

Finalizing your mortgage

Once the seller has accepted your offer, you can move forward with completing the mortgage process and taking possession of your new home. The first step is to decide which lender you want to use and the type of mortgage that’s best suited for you.

With a fixed-rate mortgage you’ll always know what your monthly principal and interest payments will be. Fixed-rate mortgages offer 10–, 15–, 20–, 25– or 30–year terms. An adjustable-rate mortgage (ARM) can offer lower early payments than a fixed–rate mortgage. An ARM offers a 30–year term with a fixed interest rate for 5, 7 or 10 years (based on the chosen product), and becomes variable for the remaining loan term, adjusting every year thereafter.

You can save in interest over the life of your loan by choosing a 15-year term over a 30-year term. Your monthly payment, though, will be higher.

Your lender will order an appraisal to determine if the purchase price of the home is comparable to similar homes in the area. The appraiser will examine the house and then compare it to similar homes that have recently sold nearby. While waiting for closing, it is essential that you don’t do anything that changes your financial situation, such as applying for new credit, changing jobs, or getting behind on your current credit payments.

Once your mortgage loan is approved, your lender will set a closing date.

Three business days before closing you’ll receive a Closing Disclosure. This document itemizes all of the funds and costs paid by the buyer and seller either at or before closing. This document will show the loan amount, interest rate, loan term, origination fees, title insurance, deposits for property insurance and taxes, homeowners insurance and any other fees. Review the Closing Disclosure carefully and compare it to the Loan Estimate you received to make sure there are no surprises.

You’ll receive a Final Closing Disclosure during your closing. This is the final version of the document you received 3 business days before closing. Check for any last minute changes.

The most common closing fees are:

Appraisal fee—For the estimate of your home’s market value
Attorney fees—For any legal representation to prepare and record documents
Inspection fee—For examining for structural problems; also for termites, lead paint in older homes and your roof
Origination fee—For processing and administering your loan
Underwriting fee—For reviewing your mortgage application
Title fees—For the search to verify there are no tax liens on the property and for insurance to protect you if a problem is discovered

Deciding to buy a home is a significant investment and not one to be taken lightly. Taking time to understand how to put yourself if the best financial position for pre-qualification and approval is an essential first step. Let us help make the buying process easier, allowing you to enjoy the home buying experience.

Source: chase.com