Understanding Closing Costs

When purchasing or refinancing a home, the final step in the process is the closing. It’s important to keep in mind that there will be additional costs associated with closing on your home. If you are a first time homebuyer, you’re probably aware that you need to save money for a down payment, but you may not realize the full costs associated with closing, and they typically run anywhere between 3 – 6 percent* of your approved loan amount.

So What Are Closing Costs?

The term “closing costs” is a bit vague but essentially straight forward.  These are the costs incurred at the closing of your mortgage. They may include:

  • Loan origination fees
  • Appraisal fees
  • Title searches
  • Insurance
  • Taxes
  • Credit report charges
  • Any other fees and expenses incurred

Why Are Closing Costs Necessary?

While no one looks forward to additional costs, the fees actually benefit you. Title searches and other fees help protect you so that you know you have legal possession of your home.

Who pays for the Closing Costs?

For the most part, you as the buyer will pay for the closing costs. However, depending on the loan product, some of the costs may be absorbed by other parties. For instance, with VA loans there are limits to what buyers pay in closing costs.

 

CHECK OUT OUR MORTGAGE CALCULATORS

 

*percentages listed are an estimate and may not reflect the percentage rate you will pay.

Get Your Home Fall Ready Before Temperatures Begin to Dip!

The most wonderful time of the year is upon us. The leaves will change and the weather will get chillier. That can only mean one thing; fall is coming!

In order to get in the spirit of the season and prepare for cooler weather, we’ve compiled a list of fall prep must dos. Check off each of our home ready tips, and you’ll be sipping a pumpkin spice latte snuggled by your fire place in no time!

  1. Get Cozy

Blankets make life more comfy. Pull out your down comforters and fluffy blankets and get your bed ready to go for the cold nights ahead.

  1. Clean Things Up

Who says deep cleaning your home is an activity just for spring. Fall cleaning can help get your house prepped and decluttered for cooler weather. Make sure there’s no clutter stored near heaters, furnaces or other heating appliances.

  1. Let There be Fire

You may want to hire a chimney sweep to get your fireplace in tip top shape for the cold weather season.  Unfortunately, fires are more likely during the fall and winter. Keep your home and family safe by taking necessary safety precautions with your chimney and fireplace.

  1. Fill in the Gaps

Make sure all gaps around windows and doors are sealed up. Weather-stripping and caulk can help, so that your home stays insulated and warm during the cold months ahead; don’t make your furnace work harder than it has to.

  1. Perform an Appliance Checkup

As temperatures drop, it’s important to be able to keep your home warm and comfortable. Check your boiler or furnace and replace filters. Also, test your smoke detectors and carbon monoxide devices. Safety is key!

First Time Home Buyer Guide

Conventional Mortgage Loan Requirements & Benefits

A conventional loan is a mortgage that is not backed by a government agency. Many lenders offer “conforming loans”, a type of conventional loan, which conform to the guidelines set by Fannie Mae and Freddie Mac. These two government-sponsored enterprises then buy the mortgages from lenders, thus reducing the risk to the lender and creating liquidity for more loans. Some lenders also offer “non-conforming” conventional loans. These include jumbo mortgages and other loans that may have unusual or riskier characteristics.

Benefits of Conventional Loans

  • Loan processing may be faster because you do not have to wait on additional government requirements.
  • Down payments as low as 3% for first time home buyers. No mortgage insurance required for down payments 20% or higher.
  • Borrowers with high credit scores and a good down payment will benefit most from conventional loans. AmeriSave offers competitively low conventional mortgage rates.
  • Some government loans come with additional fees or mortgage insurance requirements that conventional loans do not have. Private lenders set their own fees for conventional loans.  For example, AmeriSave has no loan origination fee options. Read more about government programs before applying.
  • Higher maximum loan limits.

Conventional Loan Requirements

Approval criteria varies from lender to lender. Some of AmeriSave’s general requirements for single unit home purchases include:

  • 620 minimum credit score.
  • A recent full exterior and interior appraisal.
  • Maintain current job throughout the entire loan process and make no major purchases, such as a new vehicle.
  • No manufactured or mobile homes allowed.

Do you still have questions about conventional loans? Contact us by phone or chat and an AmeriSave loan originator will be happy to answer your questions. They can help you decide whether a conventional or government loan is best for you.   They can also walk you through all of your interest rate, term, and closing cost options.

AmeriSave Unveils Multi-Channel Messaging Through Partnership With Botsplash

Atlanta, Georgia – August 13, 2018 – Today’s customers want answers instantly, and AmeriSave Mortgage Corporation, NMLS ID #1168, understands the importance of being readily available to answer their questions.

Through a partnership with botsplash, an innovative digital messaging platform, AmeriSave is now able to connect their loan originators to consumers utilizing botsplash’s centralized messaging hub to engage with prospective customers via chat, text or Facebook. Custom integrations with AmeriSave’s proprietary systems enables a seamless process. This allows loan originators the ability to engage with customers across multiple messaging platforms with ease and convenience.

Not only does this technology simplify communication for loan originators, but it reaches customers when and where they want to be reached. “We strive for customer centric innovation and forward thinking outreach.  We aspire to communicate with our customers in any medium of their choice,” states Mike Berte, President of AmeriSave.

“AmeriSave has robust in-house proprietary systems managed by an innovative and agile team. This facilitated a quick and smooth integration of our platform into their ecosystem. AmeriSave understands the importance of digital engagement, and through this partnership we are thrilled to offer a platform for loan originators and customers to interact with convenience,” said Aru Anavekar, CEO, botsplash.

“Botsplash’s intuitive messaging platform empowers our sales and operations teams.  Applicants on 16 percent of our recently originated loans communicated through this platform at various stages of the mortgage process,” said Magesh Sarma, Chief Strategy Officer of AmeriSave.

Finding A Starter Home In A Competitive Market

So you’re ready to purchase your first home. Congratulations! However, after beginning your search you may find yourself wondering, where in the world are all the starter homes?

It’s a valid question to ask considering there is somewhat of a starter home shortage in many popular housing markets. Housing inventory is pretty low and that is making home prices soar. Not a great combination for first time homebuyers.

Not all hope is lost, however! Even though the market is extremely competitive, there are still a few things you can do that will put you ahead of the pack. Check out our tips below:

  1. Get Pre-Approved

Buying in today’s market is competitive so having a pre-approval letter will help you stand out as a serious buyer to sellers.

  1. Keep an Open Mind

Your first home may not necessarily be your dream home, and that’s OK! Many first time home buyers don’t plan on staying in their first homes forever; rather, they use the home as a financial launch pad for a bigger home in the future.

  1. Use a Real Estate Agent

There’s a lot to be said about using a professional. First time homebuyers really need help from someone who knows the area when dealing with competitive markets. A great agent will know how to negotiate and they can help you with realistic expectations.

  1. Understand Your Needs

Location is a big g factor for many buyers, and sometimes affordability has to be compromised when purchasing in a hot part of town. Alternatively, an affordable home in a less desirable location could leave you compromising on commutes to work or social life. Only you can decide what’s most important to you.

  1. Make a Good Offer

You’ve found an amazing home in a desirable location at a great price, now what? Well, if you found the perfect home, other potential buyers probably have their eye on it. With your pre-approval in hand, make a strong offer!

Summer Sun = The Perfect Time to Spruce Up Your Home’s Exterior!

When updating and putting work into their house, homeowners spend a great deal of time and money on the inside. However, while a home with a beautiful interior is important, don’t forget about its exterior. Just like when meeting new people, first impressions matter. Spending time improving your home’s curb appeal can increase your home’s value just like a kitchen update would. In fact, the National Association of Realtors report that a $330 lawn investment could increase the value of your home by $1000.

Check out our tips on boosting your curb appeal and put even more value into your home!

Tip #1 Pressure wash

Over time, your home collects dirt that can make it look old and uninviting. A good deck and sidewalk pressure wash can get it back to looking as good as new.

Tip #2 Update and accessorize

There are many front porch accessories that can make your home look inviting and new. Standard home address numbers, light fixtures and mailboxes could make your home look outdated, and now may be the time for an overhaul.

Tip #3 The front door

Want to give your home a pop of color? How about painting the front door as an inexpensive fix, or if you  have room in your budget, replace the old door with something a little more modern. Don’t forget to clean and polish the door knob. Beauty is in the details!

Tip# 4 Plant flowers

Nothing makes a home feel more homey than a beautiful garden. Plant flowers, plants and trees and increase your home’s beauty as well as its energy efficiency!

 Tip #5 Get rid of the garbage

Trashcans are important, but they are an eyesore. Hide them around the back of the home instead of parking them out front or install a fence to camouflage them.

AmeriSave Mortgage Corporation Named Top 10 Customer Satisfaction By LendingTree For Q1 2018

Atlanta, Georgia – April 12, 2018 – AmeriSave Mortgage Corporation was listed on LendingTree’s Top Ten Customer-Rated Lenders for Q1 2018, which was announced on April 12, 2018. AmeriSave was rated on offered rates, fees and closing costs, responsiveness, customer service and overall experience. The list features the top lenders in multiple loan categories including personal loans, business loans and auto loans.

“Once again AmeriSave has been recognized by LendingTree as one of their top lenders,” said Bob Smith, President of AmeriSave Mortgage Corporation. “I want to recognize the efforts of every team member, from loan origination to closing and beyond, who have played a part in this achievement. We will continue striving to retain a permanent spot on the LendingTree Top Ten.”

The quarterly “Top Ten” list is based on a weighted average of review rating and volume of customer reviews on the LendingTree (NASDAQ: TREE) website. This is AmeriSave’s twelfth appearance on the list in the past four years.

How Do You Verify My Assets?

One of the biggest complaints from consumers is the hassle of collecting document after document for asset verification. AmeriSave offers paperless asset verification through AccountChek. Our priority is ensuring that the information we receive is safe, secure and accurate while providing exceptional customer service in a timely fashion.

Assets are generally verified by bank statements and/or a verification of deposit that your bank completes.

Reserve Requirements

The amount of reserves varies greatly, depending on program and loan product type.

How Does Credit Affect My Mortgage Rate?

When you apply for a mortgage, your credit will be pulled during the Application Process.

What is AmeriSave’s minimum credit score?

The minimum credit score for AmeriSave is 620 for our conventional products. FHA, VA, and USDA loans require a minimum credit score of 600.

Which credit score is used to determine what I qualify for?

The credit report used for your mortgage application provides three credit scores for each applicant. These credit scores are supplied by Experian, Trans Union and Equifax. AmeriSave uses the middle of the three credit scores or the lowest credit score if only two are provided.

For applications with multiple applicants for which three credit scores are supplied, AmeriSave uses the lower of the middle credit scores. For applications with multiple applicants for which two credit scores are supplied, AmeriSave will use the lowest of the scores.

Why are my credit scores different than what I saw on a report I pulled?

Typically when you have your own credit pulled, you receive a consumer credit report. Mortgage transactions use a tri-merged report which may contain more details than a consumer report.

How do late mortgage payments, debt consolidations, short sales, foreclosures and bankruptcies affect qualifying for a mortgage?

If you have had a bankruptcy or foreclosure in the past, it may affect your ability to get a new mortgage. Unless the bankruptcy or foreclosure was caused by situations beyond your control, we generally require two to four years to pass after the bankruptcy and 7 years after a foreclosure. It is also important that you re-established an acceptable credit history.