Lehigh Valley Homes & Real Estate - Tips for Buyers & Current Homeowners

Lehigh Valley Mortgage & Lehigh Valley Real Estate – What should you know about Closing Costs and what is a Good Faith Estimate? You really need to know and be prepared before you start just looking.

We will show you what you need to know to protect your credit and also find the best Mortgage Advisor Services in the Lehigh Valley
Please welcome my guest writer and Local Mortgage Advisor,  Melissa Falcone with Allied Home Mortgage Corporation in Bethlehem.

View this Topic by Video – But make sure to review some of the information below as we have included links to other important references you should know about Foreclosures.

The Lehigh Valley Home Buyer closing costs consist of fees that are charged by the lender, title company, REALTORS®, mortgage brokers,  the government, and any reimbursement to the seller for property real estate taxes already paid. 

These closing costs also include what are called your pre-paid items, which include your per diem interest (meaning the interest paid for each day from the day you close until the end of the month), and will include your escrow of taxes. 

These fees may vary according to the purchase price of your Lehigh Valley Home, meaning the higher price of the home, the higher the closing costs will be.

The final dollar amount of your closing costs will not be determined until a couple days prior to closing so in order for you to have a ball park figure as to what you will be financially responsible for, you will need to be provided with a Good Faith Estimate from a Lehigh Valley Mortgage Advisor. 

A Good Faith Estimate is simply that, an estimate of costs.  These are not exact figures, just an estimate.   This document should be provided to you upon your initial Pre-qualification process and then again when you are interested in making an offer on a home.  You cannot make an offer on a home without know an estimate of all possible charges and fee’s.

This Good Faith Estimate will list all the closing costs and pre-paid items.  It will also include your down payment amount and projected monthly payment.  This document should be reviewed with you by your Buyer Agent and Mortgage Advisor.  It can be very confusing for a Lehigh Valley Home Buyer and it is not expected that it will be clear to you how to read this document.

You will initially receive Estimated Closing Costs from your Lehigh Valley REALTOR®.  However, this estimate may not include lender fees or mortgage broker fees.  I would recommend ALL Lehigh Valley Home Buyers obtain another Good Faith Estimate from your Mortgage Advisor to view as well.

Please know that should the purchase price, real estate taxes, or down payment amount change, I highly recommend you obtain a new Good Faith Estimate and review the costs as these changes may increase or decrease your closing costs.

The last thing you want at settlement is to be surprised that you will need to bring thousands more than you planned on bring to the table.

Lehigh Valley Home Buyers have told us that the following additional Topics where also helpful to them when thinking about buying a home in our area.  Pre-Qualification vs Pre-Approval, How When and Why to get pre-qualified? And Key Elements to the Mortgage Approval Process.

* Lehigh Valley Mortgage: Closing Costs & What is a Good Faith Estimate?* Moriah Martin is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License

Lehigh Valley Mortgage  & Lehigh Valley Real Estate – What should you know about The Mortgage Process? What are the Key Elements to getting a Mortgage?

We will hold your hand through the entire process of getting pre-qualified, how to negotiate the best rate and terms,  What you should expect from your Mortgage Advisor and what information should you be getting from them during the pre-qualification stages. 

Tell me? If you have never bought a home or have not bought a home in the last 5 years for more, How would you know how to do any of this? That is exactly why we are providing you with this information.

Please welcome my guest writer and Local Mortgage Advisor,  Melissa Falcone with Allied Home Mortgage Corporation in Bethlehem.

View this Topic by Video – But make sure to review some of the information below as we have included links to other important references you should know about the Lehigh Valley Mortgage Process.

There are four main key elements that make up the Lehigh Valley mortgage process.

1.    Pre-Qualification:

a.    I speak with prospective buyers and obtain basic information and pull your tri-merge credit report.
b.    With this information I match you with a loan program that meets your needs and goals. 
c.    I contact you to discuss the results, recommendations, monthly payment options, and closing costs and Good Faith Estimate.

2.    Submitting a Lehigh Valley Home offer:
a.    A pre-approval letter will be provided to your REALTOR® to submit with your offer.
b.   We will revisit the monthly payment and closing costs as there will be a better understanding of what the purchase price will be as well as the real estate taxes.

3.    Your Home Offer was Accepted:
a.    The Agreement of Sale is signed by all parties and provided to your Lehigh Valley Mortgage Advisor. 
b.   We will set up a time for you to sign the application package.  At this time you will provide copies of your photo     ID, employment information, income information and tax returns.
c.    I will order title and your appraisal.
d.    You will select your chosen Home Owners Insurance for the property and provide the agent’s name and phone number to me.
e.   The application package, your documents, the appraisal, title commitment, and home owners insurance declaration page will all be
submitted to the underwriter.
f.    Should we receive what’s called a ‘conditioned approval’, we will quickly provide the underwriter with the documentation they request.  This is common so your cooperation is
needed and appreciated.

4.     Clear to Close:
a.    You are now ‘clear to close’, meaning all the documentation submitted to the underwriter has been approved and your file has been moved to the closing department.  The time the settlement will take place is confirmed.
b.    A final settlement sheet is created, reviewed and approved by the lender.  The title company, REALTORS® and clients will all receive copies of the settlement sheet a couple days prior to closing.
c.     I will also notify you who the certified check should be made out to and what the dollar amount should be.
d.   You will need to bring photo ID (and a change of address card if applicable), along with your certified bank check to the settlement table.

Lehigh Valley Home Buyers mentioned that other related Topics in the Home Buying process where also helpful; Closing Costs, What is a Good Faith Estimate? The First 5 Steps to buying a home, and How When and Why to Get Pre-qualified.

* Lehigh Valley Mortgage: The Mortgage Process, Key Elements need to know* Moriah Martin is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License

Video Tips for Lehigh Valley Home Buyers - Everything a Home buyer needs to know about Lehigh Valley Mortgage (s) Resources to Lehigh Valley Mortgage programs and Lehigh Valley down payment and assistance programs. - Not only for First Time Home Buyers.

View a Video from a Lehigh Valley Mortgage Advisor on Pre-Qualification vs Pre-Approval but make sure you check out the information below as there are many other helpful Home Buyer resources available.

The Pre-Qualification is determining the amount of mortgage payment a Lehigh Valley home buyer can afford.   It is at this time your information is obtained and it is here where the home buyers goals and needs are understood to coincide with Home Buyers ideal monthly payment.  The information obtained here will not be verified until the pre-approval process.  This process is simply to create an idea of what the Lehigh Valley home buyer is looking for in a mortgage. Other Resources include: The First 5 Steps to Buying a Home, How Why and When to get pre-qualified - What Effects your credit score

The Pre-Approval process is defined as a more firm commitment on behalf of the home buyers mortgage company.  This is a formal process which includes obtaining documents that include identification, employment, and financial information.  A few examples of such documents include, but are not limited to:  state photo ID, social security card, W2's (or full tax returns if self-employed), bank statements, investment accounts, and the home buyers employer pay stubs. At this time a credit report will be pulled and employment will be verified.  A credit report will allow the Lehigh Valley Mortgage broker to see what outstanding debt the home buyer has incurred, if timely payments have been made and if the home buyer will be able to afford the monthly payment desired.  A credit report - in fact - might determine now is not the right time to take on a mortgage - It may tell us that some repairs need to be made on your credit report or money needs to be saved.

After all documents are obtained, a formal approval is provided by the home buyers  mortgage company, otherwise known to home buyers and Lehigh Valley REALTORS® as a Pre-Approval Letter.  A Pre-Approval letter is required to submit with the home buyers offer on a home to insure the Lehigh Valley sellers that the home buyer has gone through the appropriate channels for a mortgage for that particular home.   Please note this process does not include an appraisal or title search for any Lehigh Valley homes for sale. 

Neither the pre-qualification process nor the pre-approval process guarantees the home buyer a mortgage. Confirming the property appraises in value, the home buyer remains employed, his/her credit does not deteriorate, and the Lehigh Valley home buyers information does not change will all play a factor in the approval.  Buying a home real estate in Lehigh Valley PA is a long term commitment.   In order to protect your financial well being, as a real estate professional it is strongly suggested that this be the home buyers first step when considering buying a home. 

Copyright© Moriah Martin RE/MAX real estate * Lehigh Valley Homes - Mortgage - Pre-Qualification vs Pre-Approval of a Lehigh Valley Mortgage - How understanding Mortgage Programs can help the Lehigh Valley Home Buyer  a Home Buying Video Series*

Hello and Thank you for visiting my Vlog (Video Blog)

I hope you find this Vlog helpful, This video introduces a partner in my business who I have trusted for many years....Melissa Falcone, a Mortgage Consultant with Allied Home Mortgage in Allentown, Pennsylvania.

Getting a Mortgage for a home is of course part of the process of buying a home.  Melissa explains the Key Elements to a Mortgage in the video below.

Other Online resources

Email Moriah for Personalized Home Buying Help

Learn everything you need to know about Credit - www.MyFico.com

Lender Checklist: What You Need for a Mortgage

Loan Types to Consider

We hope this information has helped you!

PLEASE REPORT TYPOS, comments and suggestions are welcomed and appreciated.