HOME BUYING FAQS:
Before you consider purchasing, it’s wise to meet with a licensed mortgage banker who will help you understand how much home you can afford. Some people think they must pay off all their debt before they can qualify for a mortgage, but this isn’t the case. After determining how much you may qualify for, it’s important to assess your needs and wants in a property.
If you fear that your credit score will prohibit you from qualifying for a loan, you should still reach out to one of our licensed mortgage bankers that can help put you on the right track. Many times our expert advice can help you not only qualify for a loan sooner than you thought, but also save you thousands of dollars over the course of the loan by increasing your credit score, thus giving you a more favorable rate.
If you’re thinking about buying a home, contact us first. We’ll help you evaluate how big of a loan you qualify for. We gather information about your financial goals and show you the best loan options for your needs. We’ll also give you a pre-qualification letter to use when shopping for a home. This way, you’ll know exactly how much you can afford to spend, and it will speed up the process once you do decide to put in an offer.
A home is one of the best financial investments you can make. When you rent, you write your monthly check and that money is gone forever with no return on your investment. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay is the majority of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you’ll enjoy having something that’s all yours – a home where your own personal style will tell the world who you are.
We pride ourselves on our quick and easy process. Our closing time averages less than 30 days after your contract has been ratified.
*Closing times can vary by location, client scenario and loan type.
Believe it or not this is a very common occurrence and we have plenty of home loans that do not require a large down payment. Some of our loans allow you to finance up to 100% of the purchase price and other loans even give you money to repair a home.
Typical documents needed during the loan process are the past 2 years W2’s, bank statements, 401K statements, tax statements, copy of sales contract (if applicable), and copy of drivers license. Other items may apply depending upon your specific situation.
In addition to your monthly mortgage payment you will have utility costs such as power and water. If your utilities have been covered in your rent, this may be new for you. It is important to consider these in your monthly budgeting as you begin to think about buying a home.
Your monthly mortgage payment is made up of 4 parts:
- Principal: the repayment of the amount you actually borrowed.
- Interest: payment to the lender for the money you’ve borrowed.
- Homeowners Insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders.
- Property Taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year.
Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you’ll pay far more in interest than you will in principal – sometimes two or three times more! Because of the way loans are structured, in the first years you’ll be paying mostly interest in your monthly payments. In the final years, you’ll be paying mostly principal.