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How large of a down payment will I need? |
| Depending on the loan amount, you may be able to put down as little as 1% of the loan. Down payments vary according to loan programs, so please consult your mortgage professional for specific requirements. |
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Does my credit have to be perfect? |
| Your ability to purchase a home will depend, in part, on your credit history as profiled in a “credit report”. The information on the report is used to help us determine how responsible you are in meeting your obligations. You do not need perfect credit to be approved for a mortgage though. Mortgage brokers and lenders offer loans to meet most borrowers' needs can answer your questions, help you compare programs and select a mortgage. |
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How do I make an offer? |
| Once you have determined you are ready to make an offer, you will need to determine the true value of your future home by comparing its price to that of other houses in the area. Your Realtor® can assist you. Once you have an appraisal, you will need to reach an agreement with the current owner. You may be asked for a binder (deposit) to hold the house while the contract is prepared. |
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Which kind of mortgage should I apply for? |
| Once your ready to buy a home, you need a mortgage that fits your budget and your financial objectives. Mortgage lenders and brokers can help you compare your options and select a mortgage and help you determine the appropriate home financing options prior to locking your loan. |
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What is PITI? |
| "PITI" is the total monthly payment you will make each month to your lender and includes principal and interest on the mortgage, real estate taxes, and homeowners insurance. If you will be paying private mortgage insurance or condo/co-op association fees, these monthly payments will also be included in the "PITI" amount. |
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What exactly are points? |
| Points are prepaid interest on your mortgage, charged by the lender at the time of closing. Each point is one percent of the loan amount. For example, two points on one hundred thousand dollars is two thousand dollars. The more points you pay, the lower your interest rate will be, thus lowering your monthly payment. The points you pay are tax deductible. Contact your tax advisor. |
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What are closing costs? |
| Closing costs cover all the charges associated with the transaction, including points, origination fee, appraisal fee, title search fee, title insurance, survey, taxes, deed recording fee, charges for credit reports, etc. |
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How can I get the best rate? |
| That depends upon what programs you might qualify for, some are stricter than others and require more initial information. |
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