What is a mortgage loan pre-qualification?

Pre-qualification is the method of determining how much money you will be eligible to borrow before the loan application process occurs. A pre-qualification letter does not hold much weight when making an offer on a home. Buyers are strongly encouraged to go thru the pre-approval process.

How much money do I need to buy a home?

The costs of buying a home will vary depending on things like the price of the home, type of mortgage, and property taxes. Here’s a breakdown of the types of costs to expect: Ernest Money - When you make an offer on a home, you'll need to come up with earnest money to show the seller that you're serious about purchasing the home and can be around 1% to 2% of the purchase price. Down [...]

What is the difference between Fixed and ARM loans?

A Fixed loan has an interest rate that does not change for the duration of the loan, so your mortgage principal and interest payments stay the same.  Whereas, with an adjustable rate mortgage (ARM) the interest rates are typically fixed for a specified number of years (5, 7, or 10 years) and can vary up or down after that period, based on an index.

What are closing costs?

Closing costs are fees paid at the closing of a real estate transaction when you’re buying or refinancing a home. This point in time called the closing is when the title to the property is conveyed to the buyer. Closing costs are the expenses, over and above the price of the property, that buyers and sellers normally incur to complete a real estate transaction. Typically, the buyer's costs include underwriting, appraisal fees, mortgage insurance, homeowner's [...]

What is PMI?

PMI is Private Mortgage Insurance. On a conventional loan (Fixed, ARM), PMI is required if you borrow over 80% of your appraised value or purchase price (whichever is lower). This protects the lender against financial loss if the loan is defaulted.

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