Frequently Asked Questions

This feature is sometimes optional, in which case the expenses will be paid by you directly to the County Tax Assessor and hazard insurance company.

4. How much down payment money will I need to purchase a home?
These are the common expenses you'll need to consider when calculating how much down payment and closing cost money you'll need:

5. I want to buy my first home, how do I get started?
The first thing to do is to select a lender to work with and get your home loan approved. You and your lender will determine what home loan program and down payment will be best for you. Once your home loan is approved, then you'll know what price point to shop in.  The next step is to select a Realtor to work with.  Let the Realtor know what type, style and size of house you're looking for, what area you want to live in and what your time frame is for finding a home. 

6. Ok I've found a home, now what?
After you've found your home and have an accepted offer the next step is to schedule the home inspection if you're going to have one (it's not mandatory but HIGHLY RECOMMENDED).  Once the inspection is complete and you know for sure you're going to buy the home, it's time to hire an appraiser and pick your homeowners insurance company. 

In the mean time you should be packing, making calls to transfer utilities and schedule the moving party!

When you go to sign your loan documents, don't forget to bring your drivers licenses and social security card too.

7. What is the difference between a fixed rate home loan and an adjustable rate home loan?
With a fixed rate home loan the interest rate stays the same during the life of the loan. An adjustable rate home loan (ARM) interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable (property taxes and insurance can change), payments on an ARM loan will likely change. There are advantages and disadvantages to each type of home loan program and the best way to select a loan product is by talking to your trusted lender.

8. How is an index and margin used in an ARM?
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).

9. What is a home inspection?
A home inspection is completed by a licensed home inspector.  This is someone that the buyer hires to look under, over and through the structure to be sure it's free of defects.

10. What is an appraisal?
An appraisal is done by a licensed appraiser.  The appraiser will determine the value of a property based on comparable sales, the cost to build new and income production too if it's an investment property.  Appraisals are required in most transaction involving a home loan.

11. Top 8 things NOT to do during your loan process...

**Quit your job, or get fired!  Lenders will verify your employment a couple of days prior to funding your loan.

 **Buy a new car, make any other large purchases or co-sign for someone else to make a purchase.  The new  payment may make it difficult for you to qualify for your new home loan.