Legacy Prime Lending - Resources #Fees

Frequently Asked Questions About Interest Rates

Mon, 24 Jan 2022 13:40:34 -0600

How does Gapital determine my mortgage interest rate?

We don't. Based on a wide range of factors, such as market conditions, credit history and property characteristics, we shop the through our array of lenders to find you the best program and interest rate for your particular scenario.

Will I get the same rate I was quoted?

Yes. If you provide accurate information, the mortgage rate quote you receive will be available to you in almost all cases.

Keep in mind that rates change constantly, so the sooner you apply and get us all the needed documentation, the sooner you can lock in your rate.

What is included in the monthly payment?

Your monthly payment generally consists of the following:

Principle and Interest
Homeowner's Insurance
Property Taxes
(if applicable) Homeowner's Association Due

Depending on the loan product, you may be able to waive impounds, which just means you can pay your insurance and taxes when they are due rather than adding them to your monthly payment.

What are points and credits?

Points represent a percentage of your mortgage loan amount (1 point = 1%). You might choose to pay points at closing in exchange for a lower interest rate on the loan. In other words, by pre-paying some interest, you are "buying down" your mortgage rate.

Conversely, you might choose to receive a credit (or rebate) at closing to help cover other costs and fees. This would correspond to a higher interest rate on the loan.

Frequently Asked Questions About Purchase Costs

Mon, 24 Jan 2022 13:34:16 -0600

How much will it cost me to buy a home?

Great question. Here are the upfront costs to expect when you purchase a home:

Down payment: This is the portion of the purchase price you agree to cover.
Third-party fees: These are fees paid to third parties, not Better. These services are required to get a purchase loan no matter which lender you use and we don't mark up the prices. Some of those fees may be paid by the seller. Examples include the appraisal fee, title insurance, and transfer taxes.
Escrow deposit: If you choose to pay for your homeowner's insurance and taxes as part of your monthly loan payments, you will need to pay an initial deposit so the account can cover future payments. The number of months required will depend on when these items are due for payment relative to your closing date.
Pre-paid interest: This is a one-time upfront interest payment due at closing. It covers interest from the day of closing through the end of the month.
(optional) Loan points: We allow you to get a lower interest rate by paying points.

When will I need to pay these costs?

After your offer is accepted and you sign a purchase agreement, you will pay an earnest money deposit. This shows the seller you are serious about the transaction and typically ranges from 1-2% of the purchase price. This deposit will be applied toward your down payment.

At closing, you will be expected to pay for all remaining costs, including the down payment, third-party fees, and pre-paid costs.

Which third-party fees will I be charged?

Here are the third-party fees associated with a home purchase loan. This does not include other costs that might be negotiated into your purchase contract (ex: pest inspection fee).

Appraisal fee: A home appraisal must be done by a licensed appraiser to determine the value of the property. You will get a copy of the final report.
Credit report: We need to check your credit in order to determine your creditworthiness and monthly debt obligations.
Flood certification: We need to determine if your property is in a flood zone to ensure appropriate insurance coverage is in place.
Lender's title insurance: This fee ensures we're protected if someone later makes a claim against the title of the property.
Other title fees: You will see several miscellaneous title fees. These are charged by the title company for things such as document processing and paying the notary.
Real estate transfer taxes: Local and state governments charge a transfer tax when real-estate is sold.
Recording fees: A fee charged by your city or county to officially record the sale.
Settlement: This fee is paid to the settlement or escrow agent for coordinating the handling and disbursement of funds between the buyer and seller.
(optional) Owner's title insurance: This is an optional fee. It ensures you are protected if someone later makes a claim against the title of the property.

Which third-party fees does the seller pay?

Regional customs and laws typically determine who pays for what in a home purchase transaction. The seller might pay some of the third-party fees, like the transfer taxes or settlement costs, for instance. Consult your real estate agent to determine which party is responsible for each cost throughout the mortgage process.

Frequently Asked Questions About Refinance Costs

Mon, 24 Jan 2022 13:27:45 -0600

How much will my closing costs be for my refinance?

Your exact closing costs will be based on the circumstances of your loan.

Closing costs include:

Points or credits, as determined when you select your mortgage rate
Third-party settlement fees, which are noted on all mortgage loan estimates and disclosures
Per diem, which is pre-paid interest from the day of closing through the end of the month prior to your first payment
Escrow payment, if applicable

Within three days of submitting your application, we'll send you a loan estimate that outlines your expected closing costs. If anything changes before closing, we'll send you an updated loan estimate.

At least three days prior to closing, we'll provide a closing disclosure that gives a fully itemized list of closing costs and gives you the ability to rescind your loan if you're not completely happy.

When will I be expected to pay fees?

There are a couple of possible fees that you may need to pay before closing. We will not charge any fees until after we have sent you disclosures and you have provided intent to proceed.

Appraisal fee: The vast majority of borrowers need to pay a third-party appraisal fee. The amount will vary based on the loan type, but is generally between $550 and $700. This does not apply to streamline loans or mortgage loans on which you receive a property inspection waiver (PIW).
Re-inspection fee: For any reason, if the appraiser needs to revisit the property, they will charge a re-inspection fee, which usually is between $150 and $225.

All other fees will be paid at closing. We'll send you a loan estimate within three days of submitting your application that lists the expected fees. At least three days prior to closing, we'll send you a final closing disclosure that includes the exact breakdown of your closing costs.

What will be the payoff amount of my current mortgage?

You should continue to pay your current mortgage as scheduled until we close your new mortgage loan. We will coordinate with your current mortgage bank prior to closing to determine the final payoff amount. At least three days prior to closing, we'll provide a closing disclosure that gives a fully itemized list of costs, including your loan payoff amount, to complete the mortgage refinance.