Know How To Make Your Home Purchase A Success
ELMWOOD PARK, NJ (June 15, 2006) - New Jersey is abundant with a variety of homes that are for sale. The whole process of finding the right home and applying for the right mortgage can be overwhelming if you are not prepared. June is National Homeownership Month, and the perfect time for would-be homeowners to know how to make their quest for property ownership a success.
"The market is predictable in that it is cyclical, and despite the fact that interest rates are rising, there are products and strategies available to allow people to purchase a home, and build equity," says Mercedes Pedrick, Vice President of Mortgage Originations at Spencer Savings Bank. "The first consideration must be long-term goals and the duration of settling in one place, as this may affect the type of mortgage the bank will provide."
The first step is pre-approval. Pre-approval will give the potential homeowner clarified parameters of affordability. During this process, credit, income and debt ratios are all factors that will determine the type of mortgage that is best for you, whether it be a fixed rate, adjustable rate (ARM), interest-only rates, etc.
For first-time homebuyers in Bergen County and modest income buyers, Mercedes Pedrick points out programs that are available, such as the Bergen County American Dream. This program assists qualified buyers through home ownership education, by helping the buyer to secure a manageable mortgage, and with government grants that may be available. Spencer also offers two mortgage products, a First-Time Homebuyer Mortgage and a HomeHelper Mortgage, that assist low to moderate and median income families as well.
Once the homebuyer finds the property of interest, it is recommended that an independent home inspector be secured to reveal any potential hidden costs of prior negligence or unattended wear and tear, bringing the home to sustainable livable conditions.
Prior to closing, there is a document review process overseen by real estate attorneys, who will then prepare the closing statement that lists all the financial factors pertaining to the deal.At the closing, the buyer will need to sign a handful of documents: a promissory note, mortgage document, truth-in-lending form, loan application, affidavit of buyer's various names, private mortgage insurance application (if down payment is less than 20 percent), and provide termite or other inspection forms. The buyer and seller also sign an affidavit of title, RESPA form, and sometimes a separate closing statement detailing all costs of the transaction.
The cost of the typical closing includes an appraisal fee, attorney's fee, survey fee, inspection fees, title fees, loan discount fee (points), title insurance and recording fees. Depending upon the particular situation and desire of the new homeowner, the hazard insurance, and even the property taxes may all be included in the monthly mortgage payment.
"Many people turn to their community bank when looking for a mortgage," says Pedrick. "Community banks have a vested interest in their communities. Therefore, they offer competitive mortgages in order to make sure they do more business in their communities. You'll also receive better service from a bank with established roots in your community."
Spencer Savings Bank, headquartered in Elmwood Park, NJ, is a community bank serving its local communities with integrity and pride for more than 65 years.The Bank serves local consumers and businesses by offering a full line of personal and business banking accounts, operating 17 branches throughout Northern New Jersey and providing electronic banking convenience via call center, Internet and a network of ATMs. Spencer Savings Bank has over $1.8 billion in total assets. For more information, visit see our mortgage rates page site at www.spencersavings.com/54443.html or call 800-363-8115.
