Be Prepared

 

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 

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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: 

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Application/Processing Fee – Charged by the loan officer to process your loan application.

Underwriting fee – Charged by the lender to evaluate your loan file.

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.