Home Purchase

You are ready to embark on the journey of homeownership. Buying a home can be a daunting process. It will also be fun and exciting.
Your new home search should be a positive and memorable experience. Of course, there are highs and lows along the way. We help you make good choices that are right for your individual situation.

Mortgage Preapproval - If you are not yet pre-approved, click here to get started. A strong Pre-Approval letter from a local lender increases your buying power and gives you confidence during your search.
Begin gathering the needed documentation:
• Names, addresses and phone numbers of employers for the past two full years.
• Names and phone numbers of landlords for the past two full years
• W-2 forms for the last two years (1099’s and K-1’s if applicable)
• Paystub dated within the last 30 days that shows your year-to-date earnings.
• Statements for all checking, saving, investment and retirement accounts. These should be the most recent 2 months or most recent quarter. All pages are required, even blank ones.
• Valid Driver’s license (s)
Other items may be required depending upon your individual scenario.
Beware of internet lenders. While some are reputable, there are many who are not.

PITI Your new mortgage payment - Most people are familiar with the term PITI when it comes to mortgage payments. But what does the acronym really stand for?
P=Principal paid each month
I= interest collected each month by the bank on monthly principal balance
T= Property Taxes. Approximately 1/12 of the annual real estate taxes is a part of your mortgage payment These are held in an escrow account by your lender. The taxes are paid from your escrow account every six months when they are due.
I= Home Insurance. Approximately 1/12 of the annual premium of your homeowners’ insurance policy is a part of your mortgage payment. This monthly premium payment is deposited in an escrow account, then paid out annually by the lender to your insurance company.
M I= Mortgage Insurance. In many cases, there is also a fifth element of your mortgage payment. This is known as PMI or private mortgage insurance. If your down payment is less than 20% of the purchase price of your new home, you will be required to pay PMI until the mortgage balance has been reduced to 78% of the home’s market value. All FHA loans, regardless of the amount of down payment, require PMI.

Choose a Realtor - As a buyer you should not pay for the services of your Realtor. That is covered by the Seller. So, it would be crazy not to have your own Realtor who you trust look out for your best interests. I am happy to recommend a few Realtors for you to interview. DO not go look at a house before you have chosen your Realtor.

Offer to purchase - Once we find something you love, you’re ready to make an offer. Your offer should include:
• The home price and the amount of earnest money deposit
• Type of Financing
• Whether there will be a Home inspection (and any other inspections) and the timeline
• Who pays for Title Insurance, closing costs and other negotiable terms.
• Closing and possession date
• Duration of offer

Closing Costs - Once you are in contract to buy a specific home, I will provide you with a Loan Estimate detailing the costs associated with the mortgage. Their approximate costs of all lender related fees is approximately $3500. This includes title fees, the appraisal and recording fees.