Closing Costs & Pre Paid Items
Buying a home is a process and to begin the process, a potential buyer should always seek counsel from a Lender/Loan Officer to determine buying power and mortgage approval criteria. Too often, potential buyers begin shopping online without a pre-approval letter from a Lender. This is a bad choice. Not only does a buyer need to know their buying power, they also need to be aware of any obstacles they may have to securing a mortgage. Why shop for a home, fall in love, only to find out you can’t buy a home right now.
Another important reason to begin the process with a Lender and/or a REALTOR® is in order to understand the true costs of purchasing a home. There are closing costs associated with every home purchase – no matter what type of loan you are using. For those who will have an escrow account attached to their mortgage, there are also costs involved with setting the account up. Many buyers are shocked when they realize the actual costs involved in buying a home.
Determining the Monthly Payment
Credit score is the basis for interest rate. If you have a great credit score, you will acquire a better rate than someone with a lower credit score. The interest rate has the biggest impact on your monthly payment. By starting the home buying process with a Lender, you will know what interest rate you are likely to secure. Furthermore; each and every house you are considering must be analyzed independently. A home might have a larger price tag but actually be less expensive because of HOA and CDD fees, taxes, and the cost of homeowner’s insurance.
Hedstrom & Stamm Home Solutions Net Sheets
Our Team will work closely with your Lender to make sure we have a clear understanding of your position as a home buyer. As we look at properties, our Team is able to prepare estimated expense sheets (net sheets) that give a clear understanding of closing costs, pre paids, and mortgage payment for each individual house.
This is an example of a Hedstrom & Stamm Net Sheet
FHA-VA-Conv-Net-Sheet