As you search for your new home, be sure to pay attention to the neighborhood. Observing how the neighbors live can help you make a decision regarding the purchase of your new home.

At some point while viewing the house, be sure to walk through the yard. Check for damage to the fences and the cost to repair external structures. These shouldn’t be business killers, but you do need to know the cost of future repairs.

While doing the exterior inspection, be diligent in checking the exterior structure of the house. Check for rot around the windows and soffit, as well as the fascia.

Inside the home, make sure the floor plan is satisfactory for your family’s needs. Interior style, color scheme, carpets, flooring, and wall coverings are all things to pay attention to. All of these items can be exchanged if you don’t like them, however the cost does add up and must be taken into account.

These closing costs listed below are typical in Florence, SC These quotes are an estimate and are not guaranteed as each loan company, insurance agent and attorney charges differently. These costs do not include “prepaid items” (see below)

•Loan origination fee: 1% of loan amount

• Subscription Fee: Varies

•Flood Certification Fee: $16-$20

•Credit report: $15-$50

• Appraisal: $350

•Tax Service Fee: Varies

•Survey: $265

•Home inspection: $200-$300

•Pest inspection: $165

•Attorney Fee: $375-$500

•Title Insurance: $3 per $1000 plus $25

• Employee Copy Fees: $25

• Recording Fees: $10-$25

• Courier Fees: $25-50

Again, these are typical fees and closing costs can vary, however in my experience closing costs range from $2,000-$4,000. This will vary depending on the amount of the loan.

The lender will request certain personal information from the borrower. Below is a list of items required for a credit application:

•Employment information, including time on the job

•Addresses for two full years

•Gross monthly income

•W-2, if available

• Proof of pension, retirement, disability or Social Security

• Proof of income from rentals, investments, etc.

• Proof of child support or alimony paid/received

• Pay stub for the year to date

If you are autonomous:

•Two year 1040 tax returns

•Statement of profit and loss for the current year

creditors

•The name, address, and account type of each creditor

•Account numbers

•Monthly payments and approximate balances

• Amount of child care expenses

banking

•Names and addresses of savings institutions

•Account numbers for all accounts

•Type of accounts and current balances

Miscellaneous

•List of assets in stocks, bonds, land

•Cash value of life insurance (documented if used as cash down payment)

•If the applicant is selling a home, a copy of the sales contracts

•Buyers’ Social Security Numbers

•Veterans – Certificate of Eligibility and DD-214

• Sale Agreement

•Copy of the contract

•Instructions on how the appraiser should obtain the input

As the loan process progresses, the mortgage company will almost always ask the buyer to update information, such as check stubs or bank statements, just before closing. This is just part of the normal process and there is no reason to be nervous about asking them.

Things to Consider During the Mortgage Loan Process

Once a buyer has been approved for a home loan, there are a few precautions to follow. It is imperative that anyone whose name is on the loan application not allow a credit check by another business, such as a car dealer or other loan company, during the loan process. A borrower should never try to get more credit while in the home loan process, as this is likely to slow them down or even lead to a denial outright. Applying for more credit will change the buyer’s entire financial picture, and the mortgage company will halt the process until it is absolutely certain that the applicants’ “debt-to-income” ratios are within limits. For security reasons, the mortgage company can wait 90 days or more to start the process over. Buying a new home can be a very exciting and wonderful experience, however it must be done the right way. If a buyer follows the above guidelines, the home loan process will be much easier.

Happy home buying!