Lynn B. Friedman - Atlanta Homes ODAT Realty: October 2017

Overview and Advice On What 1st Time Homebuyers Need To Know

Dear Readers -
George Souto, a Connecticut Mortgage Loan originator, is one of my main sources for keeping up to date with Mortgage info. "One of" due to the excellent advice available from Joe Petrowsky, Rob Spinosa and John Meussner to name a few who share their knowledge on AR.

 

Mentioned in this post, George has a full set of Buyer Education Seminar posts. We send his complete series to new Clients as they include complete information - A to Z - for the Mortgage process.

George has done such a great job with the info - there is no point in re-inventing the wheel, as they say.

 

Other posts from George include Stick to the Facts, Reduced FHA Premium, Higher Conforming Loan Limits in 2017 and Build Up for Sales in the Fourth Quarter Each Year.

  All the best - Lynn

PS  If I haven't thanked you personally for reading my Blog, let me do so right now! I really appreciate your stopping by and (perhaps) commenting! L.

The Fall Market is here which means many First Time Homebuyers will be out looking to purchase their dream home before Winter sets in.  Purchasing a home can be overwhelming especially for First Time Homebuyers.  This is most likely the single largest expenditure they have ever made in their lives, and a process First Time Homebuyers are not familiar with.  At the beginning of this year I posted an in depth 1st Time Homebuyer Seminar Blog Series on the steps involved in purchasing a home and obtaining a mortgage.  However, I thought it might be beneficial to provide a condensed blog with a brief Overview and Advice On What 1st Time Homebuyers Need To Know in purchasing their first home.

There are several steps in the Home Buying Process, however, there are 3 major areas Homebuyers need to be aware of in obtaining a mortgage to purchase their first home.  For the purpose of this blog I am combining all 3 areas into this one blog, along with a brief description.  However, I will also provide links to past blogs with a more in depth explanation of each.  The 3 major areas couples obtaining their first mortgage need to be aware of early in their home purchase process are:

1.  Closing Costs

Most 1st Time Homebuyers are aware they will need a down payment in order to purchase a home, or the ability to borrow a down payment through programs available for 1st Time Homebuyers.  But many 1st Time Homebuyers are not aware of Closing Costs.  So it is very important for a Loan Originator to make them aware of what the Closing Costs will be, and how much money they will need.  Below is a list of the Closing Costs most common for all mortgages. 

  • Application Fee/Processing Fee
  • Appraisal Fee
  • Attorney Fee
  • Title Insurance Fee
  • Recording Fees
  • Daily Interest Charge
  • Homeowners Insurance
  • Escrows:
    • Taxes
    • Homeowners

There could also be other Closing Costs which are less common such as:

  • Points
  • Credit Report
  • Flood Certification
  • Funding Fees
  • Condo Questionnaire Fee
  • Re-inspection Fee

2.  List of Documents

Not all Loan Programs require the same documents, but there is a group of basic documents which are required for every Loan Program:

  • One month of paystubs, or if retired or disable
    • Pension Award Letter & proof of receipt
    • Permanent Disability Award Letter & proof of receipt
    • Social Security Yearly Award Letter
  • W2's or 1099's for the past two years
  • Bank statements 1-3 months depending on the Loan Program (all pages)

There are several more documents which may be needed depending on the Loan Program being applied for, and can be viewed by clicking the link above.  But these documents above are required with almost every Loan Program.  1st Time Homebuyers would be wise to gather these documents early on in their home purchase process, so they can proceed quickly in obtaining a mortgage once they have found their dream home.  It is also very important for 1st Time Homebuyers to provide additional documents quickly when an Underwriter or Processor asks for them.  Failure to provide documents quickly can result in their mortgage not being approved on time.

3.  Bank Deposits & Withdrawals

The third area, Bank Deposits & Withdrawals are a part of the initial documents listed above in #2.  Bank Statements are required with almost every loan, and they usually create a challenge for ALL Borrowers no matter how many times they have purchased a home before.

These days just about every Bank Deposit or Withdrawal needs to be documented or explained.  Most of the Bank Deposits and Withdrawals are easy to identify such as:

  • Direct Payroll Deposits
  • Income Tax Return Deposits
  • Bills Paid Online

But cash deposits or bills paid by check are sometimes hard to identify with out a copy of a check to prove where the money came from or who it was paid to.  So it is important for 1st Time Homebuyers to look through the Bank Statements they will submit and try to obtain the necessary supporting documentation.

This is a lengthy blog even though I just provided a brief overview of each of these 3 major areas homebuyers need to be aware of in obtaining a mortgage.  However, there is much more to each of these 3 major areas which you can read by following the links above and reading my 1st Time Homebuyer Seminar Blog Series.  I hope this brief Overview and Advice On What 1st Time Homebuyers Need To Know in purchasing their first home, is beneficial, however, I am always available to answer question or provide a further explanation for anyone who requires it.

 

 

******************************************************************************

 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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Comment balloon 3 commentsLynn B. Friedman • October 29 2017 01:00PM
Overview and Advice On What 1st Time Homebuyers Need To Know
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