Common Questions
What real benefits do homeowners have?
Being a homeowner gives one a sense of stability and permanence. It gives the flexibility to make home improvements that meet your specific needs wherever and whenever you want to. You are not subject to periodic rent increases, and the interest you pay may be deductible from your taxes, in some cases up to 100%. Consult with your tax advisor.
What is the difference between applying for a loan and getting pre-qualified?
Before you begin to look for your home, it is important that you visit with a home loan lender who will analyze your assets, debts, and sources of income. Based on the preliminary analysis, they will tell you the amount of loan for which you qualify - this is called a pre-qualification. Once you find the home you want to purchase, you can then formally apply for your loan. The lender will then ask you to provide the necessary documentation (e.g. paystubs, bank account information, etc.) to verify that the information you provided during your pre-qualification is accurate.
What is a credit report?
A credit report contains your payment history, shows that you paid your debts on time, if you have ever been late in making payments, or if you have ever failed to make payments. Lenders use the credit report to determine a potential borrower's ability to make timely payments, and to judge whether or not the person would make a good prospect for the loan. If you are thinking about buying a home, you will need to show that you can make your payments in a prompt and responsible manner. If you have credit concerns, we can review your credit report with you. There are loans available for customers that have experienced some credit issues in the past and we can help determine the loan that fits your needs.
How much money do I need for a down payment?
It all depends on how much you want to pay for a home and how much money you have available. If you do not have much money available, there are loans that have been created to help first-time homebuyers. We offer a variety of loans that can normally accommodate each borrower's needs. Some of these programs have less stringent qualification guidelines, while others require little or no down payment. In many cases, the money needed for the closing costs can be incorporated into the loan amount, reducing the amount of money a borrower needs to have on hand to purchase a home.
What types of insurance will I need for the closing?
You will need to present proof of at least two types of insurance in order to close on the home. The first is homeowner's or hazard insurance, which protects your home in case of a fire or other catastrophe, and protects you in case someone is injured on your property. The second is title insurance, which protects you and the lender against losses due to disputes about the ownership of the property or any legal demand against it. The ordering of title insurance is generally handled by your mortgage professional or Realtor.
Why should I get a professional inspection?
The inspection of a home is a very important step. It can identify any existing problem that the home or property might have, whether minor or major, prior to the purchase. We recommend that you be present during the inspection, so that you can ask any questions you might have, as well as to become aware immediately of any existing problems.
What should I do before the closing?
It is very important to keep in mind that, prior to the closing, you should be certain that all conditions you specified in the sales contract have been met. If the owners need to do any repairs on the home, make sure they have completely finished them. And prior to signing any document, we recommend that you make sure that all the information in it is correct.