Know the Numbers

Buying a home involves more than just the purchase price. Understanding the costs associated with your mortgage can help you make informed financial decisions and avoid surprises along the way.

• Credit Report
  Your lender will review your credit history as part of the mortgage approval process. Your credit score, payment history, outstanding debt, and length of credit history all help determine the loan programs and interest rates you may qualify for.
• Loan Application & Processing Fees
  Lenders may charge fees to process, underwrite, and prepare your loan. These costs vary by lender, so it's worth comparing estimates and asking questions about what's included.
• Interest Rate vs. APR
  Your interest rate determines the cost of borrowing money, while the Annual Percentage Rate (APR) reflects the total cost of the loan by including certain lender fees and financing costs. Comparing APRs—not just interest rates—can give you a more complete picture of your loan's overall cost.
• Discount Points
  Some lenders offer the option to purchase discount points, which are prepaid interest paid at closing to help lower your mortgage interest rate. Whether buying points makes sense depends on your financial goals and how long you plan to own the home.
• Appraisal Fee
  If you're financing your home, your lender will typically require an appraisal to determine the property's market value. This helps ensure the home's value supports the loan amount.
• Closing Costs
  In addition to your down payment, you'll typically pay closing costs, which may include lender fees, title services, recording fees, prepaid taxes, homeowners insurance, and other transaction-related expenses. Your lender will provide a Loan Estimate outlining these expected costs early in the financing process.
• Prepayment Penalties
  While uncommon with many modern residential mortgages, some loan products may include a prepayment penalty. If you're considering paying off your loan early, refinancing, or selling within the first few years, ask your lender whether any restrictions or penalties apply.

Ask Questions

Mortgage financing doesn't have to be overwhelming. A trusted lender will walk you through each cost, explain your options, and provide clear estimates before you commit to a loan. Chris is also happy to answer questions and help you navigate the financing process with confidence