Christian Mortgage Loan Closing Costs
Reviewing Christian mortgage loan closing costs before the day of closing can result in a smoother process and perhaps in some savings for the buyer. Closing procedures are notorious for being a time when additional fees can be inserted, and anxious buyers may be willing to allow these fees to go uncontested rather than disrupt the process of obtaining the mortgage. The government requires that a good faith estimate (GFE), which gives an estimate of all charges related to obtaining the loan, be given to the buyer at least three days before the closing. Although some changes in charges is inevitable, the GFE can at least help the buyer to get an idea of the funds which will be required. However, it is merely an estimate, and 'mistakes' are not easily regulated. Happily, the GFE can be used as a tool in the buyer's hands as well, for this good faith estimate allows the buyer to compare deals available from the various lenders before commiting to any one of them. After all, as Proverbs 18:17 observes, "He that is first in his own cause seemeth just; but his neighbour cometh and searcheth him." A deal on a mortgage may seem great, until the terms are set up against another offer!
Mortgage-related expenses can vary by state and even a local community may have its own usual practices regarding these procedures. Some charges are set by law. In this case there is nothing to negotiate. However, other expenses, such as application fees, loan origination fees and discount points are within the lender's control and could be negotiated. Some closing costs are typically paid by the buyer, some are split between the buyer and the seller, and at times, even a lender may offer to pay for certain items. If the lender is willing to assume all of the closing costs, be sure to check the interest rate on the agreement, for it may be set higher than a similar offer from another lender. An attorney can advise you as to which mortgage loan closing costs are negotiable and which are set by state law.
There are some typical mortgage loan closing costs which a buyer can anticipate. The good faith estimate should cover most of these. Any special regulations regarding the method of payment (such as paying by certified check) should also be revealed by the lender before the closing. Closing costs may include the following items: points, PMI, loan origination fee, escrow deposits, homeowner's insurance, title insurance and fees, appraisal fees, inspections and property surveys. Other charges may result from items such as credit reporting, recording fees and the payment of transfer taxes. If applicable, flood insurance may be another requirement.
Let's take a closer look at these items. A buyer may have to pay points as part of mortgage loan closing costs. If the buyer has chosen (or is required) to pay points, these will be due at closing. Private mortgage insurance (PMI) may also be required, unless the buyer is able to put at least a 20% downpayment on the table. This insurance protects the lender if the buyer defaults on the loan. PMI usually costs 1/2 of 1% of the loan's total amount. Check to see how much of the PMI must be paid up front and how much can be paid over time, as this may vary. The loan origination fee is the charge for processing the agreement and other related paperwork. Escrow deposits may vary considerably from one state to another.
Homeowner's insurance premiums can vary widely, depending upon the property's value. The buyer pays for this insurance. Title insurance, which protects the buyer and seller in case someone else has a deed or claim to the property, is determined by the amount of the loan. Appraisal fees are for an independent appraiser to determine the value of the property. This assures the lender that the property is valuable enough to be used as collateral. A home inspection is generally standard practice, and sometimes is conducted along with a pest inspection. Property surveys may be required by the lender, in order to see that the correct boundaries are outlined in the mortgage agreement. If other buildings or fences are intruding upon the property, this will also be indicated on the survey.
Remember that mortgage loan closing costs may often be negotiated. Since expenses may typically run between 2-7% of the loan amount, it may be worthwhile to try to split some of the fees between the buyer, seller and lender. This may be especially effective if the seller is anxious to close on the property as soon as possible, or if the lender needs the customer's business. If a person is refinancing, it is important for him or her to consider the mortgage loan closing costs in relation to the monthly savings which will be obtained.
Because mortgage loan closing costs can involve thousands of dollars, it can take years to realize any savings on a refinance deal. If the homeowner is not intending to stay in the home for several years, it may not pay to refinance. Online mortgage and refinancing calculators can help determine the best decisions to make in these cases. Some calculators are designed to figure out ongoing monthly costs on a pro-rated basis as well. Although these tools only provide an estimate of actual costs, these can be useful for comparing different mortgage loan closing costs. Another useful tool is a booklet entitled 'Settlement Costs -- a HUD guide' which may be obtained either from the mortgage lender or from the Department of Housing and Urban Development (HUD).
Christian Mortgage Loan ApprovalA mortgage loan approval is a necessary step for those who wish to buy a house but have to borrow funds to do so. The goal of applying for a mortgage loan is the desired approval, however there are several steps that are required and must be taken care of before someone can officially sign on the dotted line. If a journey begins with one step, then the goal of owning a house and piece of property begins with a person sitting down with a mortgage lender and hashing out financial details.
People who are in the market to purchase a home but do not necessarily have the proper funds to purchase the property they desire, all hope is not lost. The act of taking out a loan is a common procedure in which thousands of buyers of real estate have taken part. The system of borrowing cash and then paying back on time is widely used and relatively easy to obtain. A mortgage loan approval is required before a potential buyer can move forward, yet there are steps that must be taken before one even gets to the stage where the details regarding the borrowed funds are finalized.
The first part of the process of gaining an mortgage loan approval is to seek out and meet with a professional in the field, such as an experienced mortgage lender. Those who go through an expert reap the benefits of working with someone who is not only familiar with the field, but knows which plans will work best for whatever the financial situation of a potential client. The housing market can be confusing and competitive, but those who work closely with a lender can gain a significant advantage and become well equipped with knowledge that is essential for finding the right house at the right price.
After a potential buyer has sought out and made an appointment with a lender, the next step towards mortgage loan approval is to provide the proper documentation of financial history and proof of income. These bits of information are important as most banks will only approve a loan for someone who they feel will be able to stick with the terms and pay the money back within the allotted time. Also, a mortgage lender will need to know how much and what sorts of resources are available in order to provide the best possible loan for a client's financial situation. Occasionally these steps are necessary before a future home owner even begins looking at houses. Their job will be much easier if the knowledge of how much one will be able to afford is gained beforehand. This is also a safeguard as it ensures a person will not fall in love with a house and then become discouraged at the price.
Before a potential buyer has acquired a mortgage loan approval proper documentation of assets is required. Some examples of the proper documentation to bring to a meeting are bank account numbers, any relevant pay stubs, bills, and so on. Once a person has gained an accurate understand of their assets and have carefully considered the many types of loans that are available, they should fill out the proper applications and then wait. As a general basis, people usually have to wait anywhere from one to six weeks to hear anything from a bank or other financial institution on the status of a loan. The waiting process can be frustrating but essential nonetheless.
From time to time, during the wait, a bank will ask the customer for additional information as required. A client should not worry as this is a normal development in the processes towards mortgage loan approval. When a request has been issued for additional information the sooner a person is able to obtain the information the better as the process will be able to proceed as smoothly and quickly as possible. When a person has finally acquired a mortgage loan approval they then proceed to have a date set on which to take care of all the closing details. Those who get to this stage must take into account that they are held responsible for most of the closing costs, so they must plan finances accordingly. If working directly with a real estate agent or lender, the customer can rest assured as their agent will have beforehand given them an idea of how much to expect to have to pay. Once the closing has been taken care of, a new home owner can move in, and then work on meeting the subsequent payments keeping in sight the end of the duration of the loan.
The process of acquiring a Christian mortgage loan approval is the most common step towards the purchase and eventual ownership of a home. Those who are interested in finding information about the types of loans available should peruse the Internet as copious amounts of helpful advices and important facts can be found. Several websites can be easily accessed that offer helpful tools such as amortization calculators and the like that help people gain an idea on how much they might be able to afford. As many factors exist that require careful consideration, a wise decision for everyone is to seek out an agent or professional lender who can help to guide and direct in an otherwise potentially confusing market and should not be taken for granted, "I will instruct thee and teach thee in the way which thou shalt go: I will guide thee with mine eye" (Psalm 32:8).