Mortgage Financing Pre-Qualifying
A necessary step in the purchase of your home is a no obligation meeting with one or more lenders before looking at properties. This meeting will help determine the loan amount you can qualify for, the range or properties to fit your budget, and an estimate of all costs involved in both formal loan application and the final closing. It is also an opportunity to discuss and compare a wide variety of loan programs. The type and amount of the loan to be applied for must accompany any purchase offer.
Closing Costs
Closing costs are usually less than 2.5% of the loan amount for government-backed loans.
Conventional loan closing costs can be estimated using 1.5% plus the front end fees (including loan origination fee). These can vary widely depending on the lender loan discount fee (points) being charged. A “point” equals 1% of the loan amount. Your lender will provide a good-faith estimate of these costs before loan closing.
In estimating closing costs, the following should be included:
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