2 MINUTE MORTGAGE ADVICE YOU SHOULD FOLLOW
WHAT PAPER WORK IS NEEDED?
To apply for a new mortgage or refinance, you will need to provide the following documentation. The lender will request a copy of your credit report from a credit agency and will verify the information provided in your loan application.
Be prepared to provide the lender with the following:
- Social Security numbers for all borrowers
- Copies of checking and savings accounts statements for the past 2 months
- Evidence of other assets such as stocks, bonds, or 401k
- Recent paycheck stubs
- W-2 forms or income tax returns for the past two years
- The name and address of your employer
- Residence history for the past two years
- Sales contract for the purchase of a new home
- Homeowner’s association information (if applicable)
TITLE AND CLOSING
Definitions of Closing Costs/Terms >
- Amortization Schedule: A schedule showing the principal and interest payments throughout the life of the loan.
- Appraised Value: An option of the value of a property at a given time, based on facts regarding the location, improvements, etc., of the property and surroundings.
- Credit Report: A report on the past ability of a loan applicant to pay installment payments.
- Document Preparation: A fee charged by an attorney for preparation of legal documents for a transaction.
- Escrow Fee: A fee charged by the title company to service the transaction, to escrow moneys, and to cover the documents. The amount varies with each company, usually split between buyer and seller.
- Escrow/Impound Account: Funds held by the lender for payment of taxes, insurance or other periodic debts against real property. Usually does not include maintenance fees.
- Homeowner's Insurance: Includes the coverage of Hazard Insurance plus added coverage such as personal liability, theft away from the home (items stolen from the insured's car), and other such coverage.
- Inspections: An examination of property for various reasons such as, termite inspections, inspection to see if required repairs were made before funds are disbursed, etc.
- Interest: Rate charged for the use of loan funds. Most often paid in arrears.
- Loan Application Fee: Paid to the lender at time of application; check with lender for amount.
- Loan Discount: The points a lender charges; may be paid by either buyer or seller on conventional loans; number of points fluctuates with mortgage money market.
- Maintenance Fee: As applied to condominiums and planned developments, the amount charged each unit owner to maintain the common area. Usually a monthly fee as part of the budget.
- Mortgagee's Title Policy: Insures the lender's lien; does not protect the buyer.
- Origination Fee: A fee made by a lender for making a real estate loan. Usually a percentage of the amount loaned, such as one percent.
- Owner's Title Policy: Title insurance for the owner of property, rather than a lienholder.
- Point: 1% of loan amount.
- Prepayment Penalty: A penalty under a note, mortgage, or deed of trust, imposed when the loan is paid before it is due.
- Private Mortgage Insurance: Insurance against a loss by a lender (mortgagee) in the event of default by a borrower (mortgagor).
- Realtor Fees: An amount paid to the real estate agent as compensation for his services.
- Recording Fees: Charged by the County Clerk to record documents in the public records.
- Restrictions: Certified copy of restrictions (in deeds of other recorded documents) required by lender.
- Survey: The measurements of the boundaries of a parcel of land, its area, and sometimes its topography.
- Tax Proration: To divide property taxes between buyer and seller proportionately to time of use, or the date of closing.
- Tax Certificates: Certificates issued by tax service showing the current year's taxes, the last year the taxes were paid, and any delinquencies to be collected at closing.