- Lender Fees. Fees can include origination and points.
- Third-Party Fees. These fees vary depending on the service. Such fees include appraisal, credit, courier, inspections, recording fees, title insurance, and fees for closing.
- Pre-paid Items. “Pre-paid” items are exactly what the name implies – payments being paid in advance of the monies being due. These are items collected at the time of closing but are not really considered costs. For example, mortgage interest that will accrue between the date of closing and the end of the month, real estate taxes and hazard insurance paid into an escrow account.
- Your current financial picture;
- How you expect your finances to change;
- How long you intend to keep your house;
- How comfortable you are with your mortgage payment changing from time to time? For example, a 15-year fixed-rate mortgage can save you thousands of dollars in interest payments over the life of the loan, but your monthly payment will be higher. An adjustable-rate mortgage may get you started with a lower monthly payment than a fixed-rate mortgage, but your payments could get higher when the interest rate changes.
A: Your credit score is only one component of your mortgage application, but it is an important one. Most mortgage lenders look at scores from all three major credit reporting agencies – Equifax, Experian, and TransUnion – and work off the middle score. Your credit score, as well as the information on your credit report, are key ingredients in determining whether you’ll be able to get a mortgage, and the rate you’ll pay.