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 ARE
YOU A FIRST TIME BUYER?
If so, you've come to the right place.
Best Quotes Corporation has several "First-Time" home
buyer programs, everything from Freddie Mac's 97% purchase to our
107% purchase program.
We have also furnished other
information to help answer your questions about everything involved in the home buying process.
The following are
required documents when applying for your home loan:
-
2 Months Bank
Statements - This verifies that you have the necessary funds
to close your loan (Down payment + Closing Costs)
-
2 Years W2's for
each borrower and 2 current pay stubs - This verifies your
employment and your monthly salary (*NOTE: If you are
self-employed, (2) year's tax returns will be required).
-
Proof of
Insurance - You will be required to purchase a new
homeowner's insurance policy which covers fire, theft, storms,
etc.
-
Sales Contract
- You will need to give BQC a copy of your signed sales
contract, which discloses all terms and agreements associated
with the sale.
-
Residential
Appraisal - BQC will order an appraisal report on the home
that you are purchasing to insure that the value is consistent
with the sales price. If the value is lower than the
sales price, it will affect your down payment requirements.
Q
& A
ESCROWS - An
escrow account is simply a separate maintenance account setup by
your lender to pay annual insurance premiums and property taxes.
Every homeowner pays a monthly escrow amount in with their normal
monthly principal and interest payment. The monthly escrow
amount is calculated by totaling the annual insurance premium and
property taxes and dividing it by 12. If the loan to value
exceeds 80%, the escrow will also include a Private Mortgage
Insurance premium (PMI). PMI is insurance the lender takes
out to protect the loan amount over the 80% value of your home.
It is based on Loan Amount and actual Loan to Value when the loan
is closed.
GIFTS - Gifts
are allowed in (2) primary forms. Borrowers can obtain a
gift from their family to help pay down payments and closing costs
for most loan programs. A number of lenders also allow for a
"Gift of Equity" from a family member selling another
their personal home.
Example: Mother is
selling son her home for $100,000 and is giving him a gift of
equity of $20,000. This enables the son to finance 80% of
the sales price with no down payment required. The mother is
satisfied with $80,000 for the home. This will only work if
the property is valued at $100,000 or more.
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