What Does it Cost?
After determining that the borrower can qualify for financing, the total cost must be considered.
There are four basic components:
Closing Costs
Standard costs are appraisal, credit report, title insurance, closing fee, recording fee. Points and origination fees are negotiable. These are collected at the time of the closing.
Most lenders charge additional lender fees like document preparation, processing, and underwriting fees. First Equity does not charge these fees, offering substantial savings to the borrower.
Prepaid Items
These are items such as property taxes, homeowners insurance, association dues and interest that are collected at closing. In addition, some of these items may be collected on an ongoing basis and escrowed to cover future bills and assessments. Your loan originator can assist you in estimating these items.
Interest Rate
The interest rate depends on market conditions and certain characteristics of your loan, such as credit scores, amount of down payment, etc. Your First Equity loan originator can offer you a rate lock at the time of application which sets your agreed upon rate for closing.
Monthly Payment
Your payment will include principal and interest. In many cases, 1/12 of property taxes and homeowners insurance will be included with the payment. If you purchase a condominium, you will also pay a monthly condo association fee separately. Before making an offer, ask your First Equity loan originator to help you estimate your monthly payment for the particular home you are interested in.