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1. |
How do I
know how much house I can
afford? Answer |
|
2. |
What is
the difference between a
fixed-rate loan and an
adjustable-rate loan?
Answer |
|
3. |
How is
an index and margin used in
an ARM? Answer |
|
4. |
How do I
know which type of mortgage
is best for me?
Answer |
|
5. |
What
does my mortgage payment
include? Answer |
|
6. |
How much
cash will I need to purchase
a home? Answer |
|
7. |
What if
I have problems with my
credit ? Answer |
|
8. |
What
if I don't have enough money
for my closing costs ?
Answer |
|
9. |
Does a
recent Bankruptcy stop me
from buying a home?
Answer |
|
10. |
I am
self employeed and have had
trouble finding a Lender.
Can I still get a loan?
Answer |
|
11. |
I am a
waitress and much of my
money is in "tips". Can I
qualify ?
Answer |
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Q
: |
How do I
know how much house I can
afford? |
|
A
: |
Generally speaking, you can
purchase a home with a value
of two or three times your
annual household income.
However, the amount that you
can borrow will also depend
upon your employment
history, credit history,
current savings and debts,
and the amount of down
payment you are willing to
make. You may also be able
to take advantage of special
loan programs for first time
buyers to purchase a home
with a higher value. Give us
a call, and we can help you
determine exactly how much
you can afford. |
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|
Q
: |
What is
the difference between a
fixed-rate loan and an
adjustable-rate loan? |
|
A
: |
With a
fixed-rate mortgage, the
interest rate stays the same
during the life of the loan.
With an adjustable-rate
mortgage (ARM), the interest
changes periodically,
typically in relation to an
index. While the monthly
payments that you make with
a fixed-rate mortgage are
relatively stable, payments
on an ARM loan will likely
change. There are advantages
and disadvantages to each
type of mortgage, and the
best way to select a loan
product is by talking to us. |
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|
Q
: |
How is
an index and margin used in
an ARM? |
|
A
: |
An index
is an economic indicator
that lenders use to set the
interest rate for an ARM.
Generally the interest rate
that you pay is a
combination of the index
rate and a pre-specified
margin. Three commonly used
indices are the One-Year
Treasury Bill, the Cost of
Funds of the 11th District
Federal Home Loan Bank (COFI),
and the London InterBank
Offering Rate (LIBOR). |
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|
|
Q
: |
How do I
know which type of mortgage
is best for me? |
|
A
: |
There is
no simple formula to
determine the type of
mortgage that is best for
you. This choice depends on
a number of factors,
including your current
financial picture and how
long you intend to keep your
house. As a CMPS
Professional, I can help you
evaluate your choices and
help you make the most
appropriate decision. |
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|
|
Q
: |
What
does my mortgage payment
include? |
|
A
: |
For most
homeowners, the monthly
mortgage payments include
three separate parts:
Principal: Repayment on the
amount borrowed
Interest: Payment to the
lender for the amount
borrowed
Taxes & Insurance: Monthly
payments are normally made
into a special escrow
account for items like
hazard insurance and
property taxes. This feature
is sometimes optional, in
which case the fees will be
paid by you directly to the
County Tax Assessor and
property insurance company.
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|
|
Q
: |
How much
cash will I need to purchase
a home? |
|
A
: |
The
amount of cash that is
necessary depends on a
number of items. Generally
speaking, though, you will
need to supply:
Earnest Money: The deposit
that is supplied when you
make an offer on the house
Down
Payment: A percentage of the
cost of the home that is due
at settlement
Closing Costs: Costs
associated with processing
paperwork to purchase or
refinance a house
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|
Q
: |
What if
I have problems with my
credit ? |
|
A
: |
We have
loan programs to fit most
credit problems. |
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|
Q
: |
What
if I don't have enough money
for my closing costs ? |
|
A
: |
There
are loan programs designed
for Borrowers who are short
on cash. It is generally
possible to get these costs
included in your loan. |
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|
Q
: |
Does a
recent Bankruptcy stop me
from buying a home? |
|
A
: |
No, it
is possible to get a new
100% mortgage one day after
your bankruptcy is
discharged ! |
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|
|
Q
: |
I am
self employeed and have had
trouble finding a Lender.
Can I still get a loan? |
|
A
: |
There
are many ways to document
income that meet the needs
of self-employeed
borrowers. |
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|
Q
: |
I am a
waitress and much of my
money is in "tips". Can I
qualify ? |
|
A
: |
There
are several different ways
to document income. We also
have "Stated income" loans
that allow for lack of
income documentation for
certain borrowers. |
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