Closing Your Mortgage

Helpful Hints on What You Can Expect

Closing on a new home should be an exciting time.But to some, it ends with the unwelcome surprise of cost increases. Closing costs are one of the least understood aspects of the home buying process. This overview can help you understand the costs involved at closing –and hopefully help prevent unexpected surprises.

I’d be happy to provide complete details about closing costs – and our range of affordable home financing products. Whatever your home financing needs, I’m ready to help.

Closing costs tend to vary from lender to lender,but are generally considered any costs associated with the purchase of a home.

Today, these costs range between 2 and 7 percent of the home’s purchase price and include three basic categories: OUT-OF-POCKET EXPENSES – FEES FOR:

•Appraisals
•Attorneys
•Credit reports
•Deed recording
•Tax services,and
•Other miscellaneous expenses,usually performed by a third party and directlycharged to the borrower

PREPAID EXPENSES – INCLUDES:
•Homeowner’s insurance
•Mortgage insurance,and
•Costs to set-up an escrow account (Escrow accounts are a service provided by the lenderthrough which they will pay annual insurance premiums and various taxes on theborrower’s behalf.The amount that goes into these accounts is based on the first year’s premiums, plus an additional amount to help build the account for future premiums.)

MORTGAGE POINTS A mortgage point is equal to 1 percent of the mortgage loan amount. When you pay apoint(s) it actually helps reduce the loan’s interest rate.For example,paying two points on a $100,000 mortgage would require an additional $2,000 up front at closing, but would cut the monthly mortgage payment. If you obtained the same loan amount at zero points,the interest rate and monthly payment would be higher, but there would not be any additional up-front costs at closing.

The Power of a Home Equity

With home values rising in many areas of the country, more and more home-owners are turning to home equity financing to reach their goals.Home Equity Financing Can Help You:•Manage your home as a valuable asset•Purchase a 2ndhome or investment property•Pay off high-interest credit accounts and possibly have one lower monthly payment•Fund important expenses like home improvements, medical and education bills, college tuition or a new/used vehicle•Increase cash flow with low monthly payment options on lines of credit•Access higher loan amounts and lower rates than most unsecured financing•Take advantage of potential tax-deductibility* of interest paid

Hudson Valley Home

http://www.c21therealestateconnection.com

Home Features Wish List

1.What age home would you like?■■Older Home ■■Newer Home ■■New Construction ■■Other__________________________________________________

2.What style of home appeals to you most?■■Rambler/Ranch ■■Traditional ■■Two Story ■■Split Level ■■Contemporary ■■Manufactured Home ■■Other______________

3.What type of construction do you prefer?■■Wood Siding ■■Vinyl Siding ■■Aluminum Siding ■■Brick■■Stucco ■■Stone ■■Other_________________________________

4.What size lot are you looking for?■■Small ■■Medium ■■Large ■■Not Important

5.How many bedrooms do you need/want?■■1-2 ■■2-4 ■■Other______

6.How many bathrooms do you need/want?■■1-2 ■■2-3 ■■Other______

7.Is having a separate laundry room important? ■■Yes ■■No

8.Is having a separate dining room important? ■■Yes ■■No

9.Is having a fireplace important to you? ■■Yes ■■No

10.Is having a garage important to you? ■■Yes ■■No

11.If having a garage is important to you, do you want a:■■One-car Garage ■■Two-car Garage ■■Three-car Garage■■Garage With Workstation ■■Attached Garage ■■Detached Garage

12.Is central air conditioning an important feature?■■Yes ■■No ■■Wall Units Okay ■■Window Units Okay

13.Do you prefer gas, oil, or electric heat?■■Gas ■■Oil ■■Electric ■■Doesn’t Matter

14.Do you need a fenced yard? ■■Yes ■■No

15.Is it important that you be near public transportation?■■Yes ■■No

16.Do you want to be in a specific school district?■■Yes. Name of school_________________ ■■No ■■Not Important

17.How close do you want to be to your place of employment?_____Miles _____Hours ■■Not Important

What Makes a House a Home

You’re sure of one thing.Youwant to buy or build a home.Perhaps you’re someone with an “I’ll know it when I see it”attitude,but most people havevery specific ideas.Now is thetime to add dimension to yourdream.Begin by:•Getting preapproved to helpyou and your Real Estate Agentor Builder choose the righthouse in the right price range.•Completing the “HomeFeatures Wish List”to helpyou get a better picture ofwhat you want in a home.It’sworth your time,and it’s fun!

How to CLEAR UP Any CREDIT ERRORS and MAINTAIN an ACCURATE CREDIT REPORT

Find Out What’s in the Report•The three major credit “repositories” are Equifax, Experianand Trans Union Corp•Requesting a report from each should cover your complete credit history(you can request reports online: www.equifax.com, www.experian.com,www.transunion.com)•Reports are inexpensiveSee if Somebody Goofed•Most financial information, such as your credit card payment history, is sentdirectly from creditors’ computers to the three repositories’ computers•Data transfer still involves human input, including information gatheredfrom courthouse files, for example•Simple recording errors or mistaken identities could result in a mistakeon your credit reportRequest Corrections•Credit bureaus are obligated to investigate complaints and correct errors•Consumer vigilance is importantAvoid Future Confusion•Always use your full legal name in all financial matters – it reduces theodds of getting your credit file confused with that of someone else•Use a single address for all your consumer loan statementsThen Get the Right Home MortgageWhatever your home financing needs, I’m ready to help with a broad rangeof programs, money-saving options and personalized service.

How to CLEAR UP Any CREDIT ERRORS and MAINTAIN an ACCURATE CREDIT REPORT

Your credit report plays an important role in themortgage process.It containsdata from creditors,publicrecords and other sources.And in some cases,it also contains errors.You shouldobtain a copy of your creditreport six months to one yearbefore applying for a mortgage,so you can reviewthe information and see that any errors are corrected.

House-hunting Tips

Simplify Your SearchBefore you even start looking, contact me to discuss howmuch home you can afford. This assures you won’t settle forless home than you can purchase, or waste time looking athomes outside your price range.Shop SmartReal estate and lending professionals agree that securingmortgage preapproval is a very wise decision. With ourpreapproval program we can determine your price rangeand place you several steps ahead in the mortgage process.Select the Right AgentThere is no secret formula for home selection, and your bestbet is to find an experienced agent who knows the marketand is loyal to your best interests.Place Your Home Mortgage Needs in Experienced Hands I will listen to you, help tailor a program to your needs andgoals, and provide personalized service every step of yourway home

Thing to Consider when Buying a Home

Can You Qualify for a Mortgage?Determine your debt-to-income ratio. If a loan program uses a 28/36qualifying ratio, it means you are allowed to spend no more than 28%of your gross income on monthly mortgage payments, and no morethan 36% on total debt. This includes debt such as car and school loans,credit cards, child support and alimony. If a person earns $60,000peryear, their monthly gross income is $5,000. Under the 28/36 guidelines,their maximum monthly mortgage payment should not exceed$1,400, while their total monthly debt should not exceed $1,800.How Much Home Can You Afford?Down payments are generally paid in cash, due at closing, and arebased on a percentage of the selling price of the home. You can savemoney – between $20 to more than $100 a month – if you can make a down payment of 20% or more and avoid the cost of mortgageinsurance. If you don’t have 20% to put down on a home, don’t worry.There are many affordable mortgage programs available, includingloans that require little or no down payment. In addition, some veterans, active-duty military personnel and reservists are eligible for zero-down-payment programs.How’s Your Credit?All lenders require a credit report that contains various personal financial data, including loan payment information, bank and creditcard accounts and more. If you are interested in obtaining a copy ofyours, you can call any one of the many credit bureaus throughout the United States.

Things to Consider Before Buying a Home

For many people,buying ahome is the single biggestinvestment they will makein a lifetime.The so-called“right time”is different for everyone.Before making a decision to buy a home,ask your lender to help you answer the following questions.

The First Time Home Buyer

Dreams of homeownership come true more often these days. That’s because more aspiring homeowners are taking the all-important first steps of sharing their dreams with us. And to their surprise, they never dreamed that buying a home could be so easy!

फर्स्ट टिम होम बुयेर

Dreams of homeownership come true more often these days. That’s because more aspiring homeowners are taking the all-important first steps of sharing their dreams with us. And to their surprise, they never dreamed that buying a home could be so easy!