Financial Considerations

Items Needed for Your Lender

• (2) years tax returns are only needed typically for self-employed borrowers and those with other properties.
• (1) month Pay Stub that has year-to-date earnings of at least 30 days.
• (2) months Checking Account Statements & Saving Account Statements. Please provide “All statement pages” for each: the checking and savings account statements portion.
• All other Asset Statements (all pages)
• If applicable, the lender needs your Mortgage Statement for all mortgages escrowed. If not escrowed, the lender needs your tax and insurance bill. If you pay HOA fees for your property, you need a copy of the HOA payment coupon or proof of, such as a letter from the HOA confirming your payments and amount.
• Copy of your Driver License

Cash Needed in the Next Two Weeks

(After the Offer to Purchase has been accepted)

• Appraisal – Typically $400 to $500, usually payable directly to the lender
• Inspection fees – $350 to $600, based on the square footage of the house
• Home Warranty – $450 to $550
• Termite – Around $75
• Survey – $300 to $550, if you choose to have one done
• Radon Inspection – Around $150, if needed
• Well/Septic – $450 to $600, if applicable

Cash Needed at Closing

• Down Payment – 5% to 20% (investment properties) of total loan amount. There are some conventional loans that allow down payments as low as 3% now.  FHA requires 3.5% down.
• Insurance Premiums – Between 2 to 12 months. However, many lenders will require the payment of 12 months of homeowners’ insurance premium even if it is not being escrowed.
• Lender Origination Charge (if any) – This will be negotiated with the lender
• Credit check – Typically $50
• Closing Attorney – Between $500 to $800, based on coverage
• Recording charges – $100 to $150
• Title Insurance – .002 to .0025% of property value
• Insurance premiums – Between 2 to 12 months
• Taxes – Between 2 to 12 months (prorated)
• Flood Certification (if needed) – $10 to $20

Your lender has prepared a specific cost estimate for your specific situation to review.  Please ask for it and send a copy to info@SellHomes4U.com.