Understanding Closing Costs

closing

You can generally break down all closing costs into two basic groups: Amounts paid to state and local governments. These include city, county and state transfer taxes, recordation fees, and prepaid property taxes. Costs of obtaining a loan or mortgage. These fees include title insurance, appraisals, credit checks, loan origination and documentation fees, commitment and processing fees, hazard and mortgage insurance and interest prepayments. There are plenty of fees that you’ll have to pay during the closing. Many of these costs are … [Read more...]

The Pre-Qualification Process

finance-bank

Pre-approval can be a very valuable step towards purchasing a home. Many home buyers get pre-qualified for a home loan early on, and then become pre-approved before beginning a serious home search. By completing your mortgage application prior to choosing a home, you can get a pre-approval letter stating how much home you can afford. Your pre-approval letter lets you know exactly how much you can spend, and it shows home sellers and real estate agents that you're serious about buying a home. This may give you leverage in the negotiation … [Read more...]

How to Look for Foreclosures

foreclosure

With all the news regarding sub prime lending and an ever increasing number of foreclosures and auctions, it's good to understand what foreclosures are, the reality of buying a home, and how to go about trying to accomplish it. Please read through our foreclosure information pages to get some valuable information. What is a Foreclosure? Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement … [Read more...]

All About Down Payments

downpayment

An important aspect of getting a home loan is saving money for your down payment. You have many choices to make your home more affordable to you. Lenders used to require a down payment of at least 20% of the home's price. These days, however, many lenders offer flexible home loan programs allowing you to put very little down -- three percent or less of the home price. For some buyers it used to be possible to buy a home with no down payment at all, or to receive help from local down payment assistance programs. With the recent problems with … [Read more...]

The Difference Between Being Pre-Qualified and Pre-Approved

loan

Pre-Approval and Pre-Qualification - Information for First Time Home Buyers Is pre-approval a general endorsement by a bank? No, when you are pre-approved, it is for a specific loan program from a specific lender. Not all lenders offer all loan programs. You may need to get approved with a different lender or for a different loan program with the same lender, depending on your financing options at the time you buy a house. Check with the agent or broker who helped you gain loan pre-approval before you write an offer. If you think you will … [Read more...]

The Different Types of Home Loans

loan

With tighter restrictions and lending guidelines, many of these loan programs are no longer available, or more difficult to obtain. Talk with a lender to find the right loan for you. Adjustable Rate Adjustable rate mortgages have an interest rate that is adjusted at certain intervals based on a specific index during the life of the loan. Balloon Payment Loan A fixed rate loan this is amortized over 30 years but becomes due and payable at the end of a certain term. May be extended or may roll-over into another type of … [Read more...]

What Happens To Your Transaction After Funding?

escrow

In the traditional real estate transaction, be it a sale or refinance of the subject property, it is the Escrow, the repository for all documents, agreements and funds, that should direct the transaction, pursuant to instructions from the parties to the transaction, buyer, seller, lender, etc. The Title Company takes their instruction from the Escrow Company at all times. The Escrow Company opens the initial title order, receives the Preliminary Report and advises the Title Company as to what items on the report are acceptable and which the … [Read more...]

Understanding the Loan Process

home loans

Finding Out How Much You Can Borrow Your maximum loan amount depends on many factors, including: How much you can afford for monthly payments. The appraised value of the property. The amount of equity in your home, if you're refinancing. How much money you have available for closing costs and a down payment (if you're purchasing). Your credit history. Choose a loan that's right for you Countrywide Home Loans’ Full Spectrum® Lending Division offers many home loan  options. We have instant information and friendly tools … [Read more...]

First Time Home Buyers – The Importance of Pre-approval

pre-approval

Pre-approval can be a very valuable step towards purchasing a home. Many home buyers get pre-qualified for a home loan early on, and then become pre-approved before beginning a serious home search. By completing your mortgage application prior to choosing a home, you can get a pre-approval letter stating how much home you can afford. Your pre-approval letter lets you know exactly how much you can spend, and it shows home sellers and real estate agents that you're serious about buying a home. This may give you leverage in the negotiation … [Read more...]