How to Become
A Homeowner
Buying a Home with BEYourLender
HOW TO CALCULATE
THEÂ DOWN PAYMENT
Here is the formula to calculate the down payment when buying a home.
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FHA Loan Down Payment
Purchase Price x 3.5% = Down Payment
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Conventional Loan Down Payment
Purchase Price x 3% = Down Payment
OR
Purchase Price x 5% = Down Payment
HOW TO CALCULATE
CLOSING COSTS
Closing Costs on a home have a lot of variables and is different on each home so we use an estimate of about 2-2.5% when calculating closing costs.
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Closing Costs are typically
2-2.5% of the purchase Price
Purchase Price x 2.5% = Closing Costs
WHATS INCLUDED IN CLOSING COSTS
Escrow Fees
Title Fees
Loan Origination Fees
Impound Account for Property Taxes + Homeowners Insurance
Recording Fees
Notary Fees
Prepaid Interest
Mortgage Insurance Premium
DOCUMENTS NEEDED TO GET STARTED
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W-2 only 2022+ 2023
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Tax Returns 2022 + 2023 (if Self Employed)
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Most recent 1 month pay stubs
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Last 2 months bank statements
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or Asset Statement where down payment will come from
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Clear copy of photo ID
SUBMIT YOUR BEST OFFER
Always consult your Real Estate Agent for ways to submit a strong offer. Here are a few ideas to get you started.
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Have your pre-approval letter ready
Proof of funds
Submit your best offer first
Shorten Contingency Periods
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WHAT TO EXPECT
DURING ESCROW
Sign Initial Loan Disclosure (Estimate)
Complete Home Inspection W/ your Realtor
Order Appraisal
Provide Updated Documents
Receive Conditional Underwriter Approval
Submit Underwriting Conditions/explanations
Sign Rate Lock + Closing Disclosure (Final)
Receive Final Approval. Clear to Close.
Sign Loan Documents with Notary
Wire Final Funds to Escrow
Lender will Fund Loan
What NOT to do when applying for a mortgage loan.
Don't make any major purchases like furniture, appliances, jewelry, vehicles or vacations.
Don't pay off debts or collections (unless instructed to do so by a mortgage professional)
Don't have your credit report pulled too many times.
Don't change banks or transfer credit card balances
Don't open new lines of credit, including student loans
Don't close any credit card accounts
Don't change employers or quit your job.
Don't go on a vacation, making you unavailable to the lender.
Don't get married, divorced, or go on maternity leave.
Don't sell major assets.
Don't shift credit card debt from one creditor to another.
Don't transfer funds from one account to another
Don't open a new bank account or make large deposits.
Don't purchase a car or shop for a car.
Schedule Your Home Consultation
Curious to see what loan options are available for you?
Let's meet in my office or set up a phone call.