THINKING ABOUT BUYING A NEW HOME? HERE ARE A FEW THINGS YOU SHOULD KNOW.

Buying a new home is one of the biggest decisions you’ll ever make, but it’s also a lot easier than you might expect.

BUYING VS. RENTING

This may surprise you, but a monthly mortgage payment is often less than what you might pay for rent. In fact, with just 1% down, you could save more than $600/month on a $250,000 home purchase and avoid monthly mortgage insurance.

PURCHASE A $250,0000 HOME
BUY: $1,597.85* (30-YEAR FIXED)
RENT: $2,200 MONTHLY

*With the 1% Down program, the borrower put down 1%, the lender contributes 2%, giving the borrower 3% equity at closing. Assuming monthly taxes and insurance of $315.50, the monthly payment on a $242,500 30-year fixed-rate loan at 4.625% and 97% loan-to-value (LTV) is $1,597.85 with -1.153 points due at closing. The annual percentage rate (APR) is 4.624%. Taxes and insurance are estimated and may vary with each loan. Pricing current as of March 31, 2017.

5 HOME BUYING MYTHS

There are a lot of myths about buying a home that are easy to bust. Here are a few of the big ones:

1. I need a 20% down payment. This goes back to the days when lenders had far fewer options. Now, you can get a mortgage for as little as 1% down and still have a low monthly payment.

2. I have to dig up a lot of paperwork. A lot goes into qualifying you for a mortgage, but these days much of the verification process — like collecting pay stubs, bank statements and tax information — can be done automatically by your mortgage broker and lender.

3. It will take a lot of time. A good mortgage broker can take your application and give you a pre-approval letter in minutes. Many even let you do it yourself online.

4. My bank is the best place to get a mortgage. Banks don’t offer many mortgage choices. An independent mortgage broker in your local community can help you find the best options and the lowest rates.

5. I need to be “settled down” first. Even with a low down payment, monthly mortgage payments are often lower than rent prices. Plus when you buy a home, you’re paying yourself, not your landlord.

WHAT TO EXPECT DURING THE LOAN PROCESS

The mortgage process is pretty straightforward, but knowing what to expect will help everything go smoothly.

STEP 1: ELECTRONIC LOAN APPLICATION AND DOCUMENT PACKAGE
• You’ll receive a secure link to e-sign your documents, saving you valuable time.
• A Loan Estimate is included in this package. This is an itemized list of the fees that you may be charged for your home loan transaction.

STEP 2: LOAN APPROVAL
• Once your loan application is reviewed, you may be asked for additional documentation.  
• Return the requested documentation as quickly as possible. 

STEP 3: APPRAISAL

• A licensed appraiser will need to inspect the property and determine a value. (If your loan application receives a Property Inspection Waiver, no appraisal will be needed.)
• The appraisal cost is typically paid prior to the inspection. 

STEP 4: CLOSING DISCLOSURE
• This is the final list of fees that you will be charged for your loan.
• You will receive this document at least three days prior to your closing.

STEP 5: VERBAL VERIFICATION OF EMPLOYMENT
• A call will be placed to your employer; it’s important they respond promptly.

STEP 6: FINAL CLOSING
• When your loan is fully approved, your employment has been verified, and you are ready to close on your home, we will schedule a convenient time to sign the final documentation.

LET ME HELP YOU GET INTO YOUR DREAM HOME. CALL TODAY.