THE SILMON GROUP PROCESS
BUYERS EDITION

THE PRE-QUALIFICATION, cont'd.

The Pre-Qualification & Pre-Approval Processes

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How Much are Closing Costs?
You will be required to pay fees for acquiring the loan and other closing costs. These fees must be paid in full at the closing unless you are able to include them in your financing. Typically, closing costs will range between 3-6% of your mortgage loan.

What Does my Monthly Mortgage Payment Include?
Most lenders require that your monthly payment range between 29-36% of your gross monthly income. Your mortgage payment to the lender includes the following:
   The principal on the loan (P)
   The interest on the loan (I)
   Property taxes (T)
   The homeowner's insurance (I)

This is what we call PITI and your total monthly PITI and all debt (from installments to revolving charge accounts) should range between 36-45% of your gross monthly income. These key factors determine your ability to secure a home loan: Credit, Assets,
Income and Debt Ratios.

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