Tips for Buyers. ( see below)
Create a Mortgage Application Checklist
- Have a copy of your Purchase & Sale Agreement, if possible.
- Have all your present or prior mortgage information.
- Have a 2-year history of employment and of all income sources.
- If you are self-employed, have copies of the past two years Federal Income Tax Returns.
- Have information about your checking, savings and credit card accounts.
- Have the Name, Account Number and Balance of all of your debts.
- Have the information about any assets, especially assets that will be used as funds to close.
- Have a copy of your SSN card, a photo ID and at have your credit cards with you.
- If you are applying for a VA loan, have a copy of your DD214.
Questions for your lender
- Are both fixed-rate and adjustable mortgage loans available?
- What is the interest rate?
- How long can the current interest be "locked-in"?
- Is a float down lock available?
- What are all the fees and points?
- Is a second mortgage possible?
- On adjustable loans, how often can the interest rate be adjusted? Is there maximum
limits? How often will the monthly payment be adjusted? Is there a ceiling
on payment adjustments?
- Can the term of the loan be extended?
- Is there a pre-payment penalty clause?
- What is the "grace" period?
- What are the late charge rules?
- What happens if a payment is missed?
- Is the loan assumable?
- Does the lender require mortgage insurance?
- Is there life or disability insurance?
Questions for your realtor or the seller
- Are there any limits on the use of the property? Wetlands, conservation area?
- What are the taxes? What is the assessed valuation, and will it change with the purchase?
- What are local laws regarding pets, party noise and in-home businesses?
Planned Community Issues
- What are the fees, and what is the history of the community fees?
- What are the services provided?
- Who controls the community, the builder, the owners or a management company?
- READ the bylaws. Who are they written to protect?
- What are the bylaws regarding your lifestyle? Pets, teenage parties, parking and vehicles
are all potential problems. If you don't have an outdoor pet, how sensitive are you if
your neighbor does and the bylaws are ambiguous?
- What happens if the someone does not comply with the bylaws?
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