Our friend Holly Wagner joined us recently to answer some questions about the mortgage loan process. Here are some tips.

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Today we’re here with Holly Wagner from Fairway Mortgage, one of the best lenders in Charleston. She’s here to offer up some great tips on navigating the loan process and answer some common questions we’ve been getting.

What documents do I need to bring in order to get pre-approved?

You’ll need income documentation, including tax returns and pay stubs, among many other things. A good lender like Holly will make sure that you know exactly what to provide for the pre-approval process.

What do closing costs include and how much are they?

Closing costs include your appraisal fee, credit report, attorney fees, lender title insurance, owner title insurance, and any inspection costs. On a $200,0000 home, closing costs would run about 1.5%, around $3,000 to $3,5000.

Closing costs include a bunch of different fees.

What are prepaids?

Prepaids are additional costs in addition to the closing costs. This includes your homeowners insurance and your taxes. Depending on the time of year you close, it could be a higher or lower bill. Also, the prepaid interest on the new mortgage.

What is a lender credit?

That’s where a lender increases your rate slightly in order to give you a credit at closing. If you don’t have quite enough to bring to the closing table in cash, we can solve the problem this way.

Why is my loan officer asking for the same documentation again?

This is probably one of the more common questions we hear. A lot of times when you submit your documentation, the underwriter will go through everything with a fine-toothed comb to see if there are any potential problems. It happens a lot with large deposits or sums of money. It’s just the lender doing their due diligence to make sure they give you the best loan possible.

Thanks to Holly for joining me today. If you have any questions for her about the loan process, give her a call at (704) 541-1172.

If you have any other real estate related questions, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.