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Mortgage Tips

  1. Respond to all document requests from your lender ASAP. Procrastinating in the mortgage game can cost you money…serious money. Even after you lock in your rate, stay on top of these requests. The mortgage process is often long and arduous. It’s in your best interest not to delay the process.
  2. Save for more than just the down payment. Consider saving for the six months after the sale as well. First time homebuyers…you may not realize this but the first six months after you buy a house, whether it's new or not, can be expensive. Almost every day you will find something else your house needs. So, prepare yourself. Save not just for the down payment, but also for the expenses likely to arise after the sale.
    Repeat buyers, you know the drill, but don't forget to save for beyond the down payment.
  3. When do you need to close? This is very important. First, there's the logistics of moving. That is, when you need to move out of your current place and into your new home. Then there’s the potential effect on your interest rate. If a loan does not close within the lock period, a borrower may be charged by their lender a fee to re-lock the interest rate on the pending mortgage.
  4. Be aware of fees and closing costs that are over and above the down payment. Fees may vary from state to state and lender to lender. Mortgage-related costs may include, without limitation, application fees, loan origination fees, points, appraisal fees, insurance fees, and miscellaneous settlement costs. Lenders must provide you with a good faith estimate of their fees within three business days of receiving your loan application.
  5. When will I need mortgage insurance? If you cannot put down a certain percentage of your home’s purchase price as a down payment, you may need to obtain mortgage insurance. Mortgage insurance protects lenders against losses caused by a borrower’s default on a mortgage loan. Be forewarned that mortgage insurance can be a major additional expense.
  6. Check your credit score before applying. You don’t want any surprises during the application process, so check your score before a lender does.

A final note: Visit the house you would like to buy at different times of the day, especially at night. You home purchase is a considerable investment, so do a little investigating before you buy. You're looking for any potential neighborhood problems like noise, heavy traffic, or unattended dogs. And always borrow in a financially-responsible manner.

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