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Checklist

(a continuation)

Questions For Lender

____What is the interest rate?

____What is the APR? (annual percentage rate; includes fees, points and mortgage insurance)

____What is the initial rate? (if it is an ARM - adjustable rate mortgage)

____What is the highest the rate can go to next year? (ARM)

____What are the annual and lifetime caps on the interest rate and payment? (ARM)

____How often is the rate or payment adjusted, and when? (ARM)

____What index is the rate based on? (ARM)

____What margin is added to the index? (ARM - it might be the index plus 3%, for example)

____Is credit life insurance required? (this pays off the loan if you die)

____How much would the payment be without it?

____Can any of the fees or costs be waived?

____Is there a prepayment penalty?

____How much is the prepayment penalty?

____For how long is the penalty in force?

____Are extra principal payments allowed?

____Is there an interest rate lock-in available? (guarantees the interest rate until a certain time)

____Can you have the lock-in in writing?

____Is the rate locked in at time of application or time of approval?

____If rates drop, can you get a lower rate locked-in?

____What inspections and/or surveys does the lender require?

____What kind of title search and/or title insurance does the lender require? The cost?

____Can you get an estimate of prepaid amounts that you'll have to pay at closing?

____Are there "points?" How much will this cost? (discount points to reduce interest rate)

____What state taxes, local taxes, stamp taxes and transfer taxes will you have to pay?

____Will a flood determination be required? (to see if the home needs flood insurance)

____What other costs will there be?

____Is there anything else you should know?

____

When Closing Seems Certain

____Have gas or other heating bill transferred to your name as of the closing or occupancy date.

____Have electric service transferred to your name as of the closing or occupancy date.

____Have water/sewer account transferred to your name as of the closing or occupancy date.

____Arrange for garbage collection at your new home.

____Arrange for phone service at your new home.

____Arrange for cable television and internet service at your new home.

____Mail change of address forms to post office.

____Make list of necessary address changes to complete.

____Find new bank if necessary, and open account.

____Arrange for moving truck or service.

____Notify your friends and family and give them your new address.

____Get documents for school transfers for your children.

____Have a yard sale, or otherwise lighten the load.

____Start packing, and labeling the boxes.

____Pack an "essentials" box for your arrival, with toiletries, paper plates, etc.

____Make moving plans (hotel reservations, get maps, etc.).

____

Preparing For Closing

____Get the closing statement at least a couple days before closing and review it.

____If anything is unclear on the closing statement, ask about it immediately.

____Have your insurance policy paid for and ready.

____Note exactly where and when the closing will be.

____Get a cashier's check for the amount indicated on your closing statement.

____Ask real estate or closing agent what you'll need to bring to closing; make a list.

____

At Closing

____Ask a lot of questions.

____Keep a copy of the closing or settlement statement.

____Keep a copy of the mortgage note.

____Keep a copy of the mortgage or deed of trust .

____Keep a copy of the binding sales contract.

____Have everything explained to you until you understand it all.

____Get the keys to your new home.

____

Moving Day

____Have the gas shut off or transferred at your previous address.

____Have the electricity shut off or transferred at your previous address.

____Have the water shut off or transferred at your previous address.

____Cancel garbage collection at your previous address.

____Return library books, rented movies, etc.

____Transfer any prescriptions to the new location.

____Clean the house and dispose of things that won't be moved.

____Double check all rooms and storage areas.

____Turn off lights, lock the doors.

____Leave the keys with the landlord, new owner or your real estate agent.

____

In Your New Home

____Check to make sure everything is still there that was included in the offer.

____Test toilets, faucets, heating, cooling and other systems.

____Put loan payment due dates on calendar.

____Change address on all credit cards and bank accounts.

____Make the rest of the address changes on your list.

____Check taxes to see if they can be lowered (see chapter 24).

____When property tax bill comes, see if you are owed a rebate from seller (see chapter 18).

____

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