1. EARNEST MONEY – Earnest Money is money that you will provide to your Realtor once you are in contract on a home that will be deposited and held as a good faith deposit to show the Sellers that you are earnest about buying their home. At your closing, it will be reimbursed to you, and it will be used toward your closing cost.  Earnest Money is generally 1 % of purchase offer. There’s only one reason why you wouldn’t recoup this money, and that is if you pull out of your contract after all contingencies have been met.

2. HOME INSPECTIONS – When buying a home you should always have it inspected by a certified Home Inspector. A home inspection will help to find any issues that need attention on the home and will uncover any major structural, electrical, or plumbing problems that will need to be further addressed and remedied. Other inspections that you will need to consider are Radon and Pest. Your prices for the inspections can vary but will be around $400 to $500.

3. LOAN APPLICATION – Some lenders will require you to pay a loan origination fee when apply for your loan. This will not happen until you have found your home and are in contract. Depending on the lender it will be around $300-$500 So expect to spend between $1200 to $2000 before closing in addition to your down payment and closing costs.

If you’re a first home buyer and you’re reading this and feeling a little overwhelmed at everything there is to learn, I get it! It’s confusing! I love helping first time home buyers navigate this process, and I’ve helped hundreds of clients just like you find their way home. Give me a call to discuss this so that we can find the best the option for you. Owning your first home may be closer than you think!

-Cindy

Another item that the Lender will need in order to pre-approve you for a mortgage is the 2 past years W-2’s as well as the past 2 pay stubs with year to date income figures.

They will need to see your drivers license and may need to contact your employer for proof of employment.

And last but not least they will need proof of assets showing that you have funds enough for a down payment and closing cost. A bank statement will work for this if the funds are in a checking or savings account. FHA loans will require as little as 3.5% down payments but there are several Conventional loans that will require as little as 5% down as well.

If you would like more information on buying your first home always feel free to contact me! 614-216-8344

The very first thing one should do if you are thinking about purchasing a home is get your financing in order. You will need to choose a lender that you find it easy to communicate with. One that will answer your questions in a way that you understand. It is wise to choose a lender who is with a bank or mortgage company that is reputable. I recommend interviewing several lenders. This allows you the opportunity to get your questions answered by several and will help you to make a more educated decision about which lender is right for you.

Your initial sit down with a mortgage lender should include discussion about your income, debts, credit scores and how much down payment you have or will have on hand at closing. Things the lender will need are W-2’s, Pay stubs,  2 to 4 months bank statements and last years tax return.

Below you’ll find a list of initial questions you should ask your prospective lenders.

1. What price range do I qualify for? This amount is usually more than most first time buyers are comfortable spending. Have a discussion about what amount you are comfortable with as your monthly payment.

2. How much closing cost will I need to pay? This is money for escrows, transfers, attorneys fees, title fees. etc. The lender will be able to define all of these fees for you. If closing costs are a problem for you, consult your realtor to discuss writing closing costs into your purchase contract.

3. How long will it take to get a clear to close? This is the number of days that they will need to get all the paperwork in order for a close.

4.How much down payment will I need? Will I have to pay PMI? (Private Mortgage Insurance)

There are many loan programs out there that might meet your needs. A good lender will be able to discern, after talking with you, which may be best suited for you.

It is painless and will take less than an hour of your time to get this part of the process behind you. Many lenders can take much of your information over the phone to get started before meeting with you. The lender will provide you with a pre approval letter that will allow you to begin looking at homes with your REALTOR®.

A good fit with your lender is very important, as this will need to be someone you can easily communicate with and someone who you trust to always have your best interest at heart. Much like the fit you need to have with your REALTOR®.

If you are interested in local Columbus lenders and their contact information contact me at Cindy@CindySpeth.com