Buying a West Knoxville home is all about numbers.
It’s the price you pay for a home. The amount you bring to closing. The amount you pay in closing costs. Or, how much a seller is willing to pay for repairs.
With so many important numbers at play, it’s important that you have a clear understanding of all these numbers prior to closing.
In this post, we’ll explore 3 numbers you need to know before closing on your a West Knoxville home.
You’ll receive a copy of your closing disclosure at least 3 days prior to closing. One of the most important numbers that will be included on there will be your monthly payment. This is an important number for every borrower since it tells you how much you’ll be paying each month.
Prior to closing, you’ll have a general idea of what your mortgage payment will be. A loan officer will be able to provide you with an estimate on your loan estimate when you sign off on your initial paperwork. But, that number can change a bit depending on escrows and other factors.
Keep in mind, the amount that is included on your closing disclosure can change, if your taxes and insurance ever change. Typically, it’s only by a couple of dollars that it can change. But, you should know that it is possible. Also, if you have mortgage insurance that drops off once your loan meets the right loan-to-value ratio, your mortgage payment will drop once that happens.
Your cash to close is another important number that you should know before closing on a West Knoxville home. There are certain times where this number isn’t what a buyer expects, so it’s important to be comfortable with this number prior to closing.
Your cash to close will be included in your final closing disclosure. This will include all of your closing costs as well as your down payment. If you’re receiving any credits at closing for the seller or lender, these will also be factored into your cash to close.
Finally, on your closing disclosure, you’ll see your final interest rate and annual percentage rate. These two numbers are commonly confused, but it’s important that you know the difference.
An interest rate is the cost of borrowing money that is expressed as a percentage. It’s the overall charge that a mortgage company charges to lend a borrower money.
An annual percentage rate or APR is the annual cost of a loan, including any fees. It is also expressed as a percentage. The fees are what make the difference between an interest rate and an APR. The APR shows the overall cost of a loan.
Keep in mind, when the difference between the interest rate and APR is greater than 0.5%, you can expect to be paying quite a bit in fees.
Are you interested in buying a West Knoxville home for sale? If so, please do not hesitate to let us know. Rick can be contacted at 865-696-9002 or via email at [email protected]. Kati can be contacted at 865-696-1888 or via email at [email protected] Also, be sure to check out our West Knoxville Home Search Page to see what homes are for sale in the area.