1. What sales price amount do
I qualify for? The amount that you can borrow will
depend upon your income, credit scores, savings, debts, and the amount of down
payment you are willing to make. Give me a call, and generally within
15-20 minutes or so, I will be able to provide an amount that you can qualify
for so that you will be shopping for a home in the correct price range.
2. How do I know which type of mortgage
is best for me? There is no simple formula to determine
the type of mortgage that is best for you. This choice depends on a
variety of factors, including your current financial situation and how long you
intend to keep the house. I can help you evaluate your choices and help
you make the most appropriate decision.
3. What does my mortgage payment
include? Your mortgage payment may include each of the following:
- Principal: Repayment of the actual amount borrowed.
- Interest: Payment to the lender for the amount borrowed.
- Taxes and Insurance: The portion of your monthly payment placed
into an escrow account to satisfy the annual amount due for each when those
bills are due.
- PMI (Private Mortgage Insurance): Insurance required by the
lender when the down payment is less than 20% of the sales price. This
protects the lender should the property go into foreclosure.
- HOA (Homeowner's Association Dues): Many properties
will be located in an area that will have HOA dues. While these
will be paid directly to the HOA outside of your mortgage payment, they are
still considered part of your payment for debt ratios purposes.
4. How much cash will I need to purchase a
home? The amount of cash required will depend on a number of
items. Generally, you will need to supply the following:
- Earnest Money: The good faith deposit provided when you make an
offer on the house. This will be credited to your transaction at closing.
- Down Payment: A percentage of the sales price of the home that
will be a part of the amount due at closing to settle the transaction.
- Closing Costs: Costs associated with the transaction including
title related fees, appraisal, survey, lender charges, insurance, escrows for
taxes and insurance, potential HOA related items, etc.
- Inspections: Your realtor may schedule a home inspection for
your during your Option Period. Other inspections for pest and structural
may be required or preferred by you.
- Option Fee: You will have a specific time frame in your purchase
contract with the seller to conduct your inspections. This fee is
generally a small non-refundable amount paid directly to the seller that
temporarily takes the house off the market while you have your inspections
5. How long will it take for the
transaction to close once I reach agreement with the seller? While it
is common to schedule a closing date for approximately 30 days after the
execution date of the contract, I am able, in many cases, to get the
transaction ready for closing well in advance of this.