There are only three upfront costs, two of which aren't incurred until after you're under contract: Credit Report fee, Inspection Fee, and Appraisal Fee.
Credit Report: Required for Pre-Approval so that we can calculate debt-to-income, review possible qualifying-impact items such as late payments or collections (sometimes they sneak in there without our knowledge, so best to know ahead of time), as well as accurately price interest rates, as they are impacted by credit score.
Inspection: Not required for the loan, but is in your best interest to obtain one immediately upon going under contract. This will inform you of potential major issues such as slab cracks, mold, or faulty electrical wiring. Depending on the report results, you can choose to terminate the purchase contract, request repairs and/or negotiate on sales price or seller concessions.
Appraisal: This is unrelated to the inspection. Although inspection items can appear here, it's main purpose is to confirm the value of the home, to make sure you're not over-paying what is deemed as fair market value. Note, a home can be valued at X-dollars once certain repairs have been made; lenders will not allow purchases to close on appraisals that are "subject to completion." To ensure a smooth closing, you will want to discuss with your Loan Officer of inspection items if you were attempting to take the price reduction route over the repair route before these items appear on the appraisal report.
A Pre-Qualification can be provided after reviewing your financial documentation, whereas a Pre-Approval can only be provided once we have pulled your credit (in addition to reviewing financial documentation). You will want a Pre-Approval letter to show sellers your qualified, thus providing a strong offer.
Documentation includes, but are not limited to:
Our Loan Origination software houses a secure, file upload portal. We email you a link; once you click on it, you can simply drag and drop your documents.
Both methods are painless and easy.
Applying online allows you the flexibility of "24 hour" access, pausing if you need to gather information or to get back to your busy schedule.
A phone call allows you to provide explanation to more "complicated" situations or to ask additional specific questions.
Either way, we look forward to providing continued communication in any and all methods; email, text, and phone call!
Please feel free to contact us and ask! We can add it to this page to help future answer-seekers!