Page 12 - Butterfly Realty LLC

Here is an example:
Contract Sales Price: $400,000
Approved lender program: FHA with 3.5% down payment
Down Payment amount: $400,000 x 3.5%= $14,000
Closing Cost amount: $400,000 x 4%= $16,000
Cash to Close: $14,000(DP) + $16,000(CC) = $30,000 minus any possible credits (earnest money,
appraisal fee, seller’s contribution, down payment assistance, etc.)
These are the funds that you will wire to the title company (attorney office) typically 24-48 hours prior
to closing day.

Lender Responsibilities

Once under contract, a copy of the binding contract is sent to your lender and to the title company
(attorney’s office). The lender will begin to process your loan based on the terms of your approved loan
program and the binding contract. Below are somethings to avoid to make for a smoother transaction
of your loan.

Somethings to avoid during the homebuying process:

• Do not change jobs, become self-employed, or quit your job
• Do not buy a car, truck, van, or vehicle
• Do not use credit cards excessively or let current accounts fall behind
• Do not spend money you have set aside for closing
• Do not omit debts or liabilities from your loan application
• Do not buy furniture
• Do not originate any credit inquiries
• Do not make large deposits without checking with your loan processor
• Do not change bank accounts
• Do not co-sign loan for anyone or establish any new credit for yourself