4. How much cash will I need to purchase a home?
The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:

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.  You'll need to decide what size house payment you'll be comfortable with so that you can select a loan program with the help of your lender.   Once your loan is approved, then you'll know what price range to shop in for your home.  The next step is to select a Realtor to work with and set up an appointment to meet with him or her.  Let the Realtor know what you're looking for what your time frame is for finding a home.  Do you have time to be picking or do you need to move right away?  What area to you want to purchase your home in?  These are some of the important things to discuss with your realtor.

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.  After the appraisal has been completed, the lender will forward a copy of the appraisal to your insurance agent and obtain an insurance binder.  All this will then be forwarded by the lender to the underwriter and documents will be requested.

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 loan and an adjustable-rate loan?
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.

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 dwelling 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.

**Stop making payments on your mortgage, credit cards, etc.  Falling behind on your current debt can cause your application to be denied.

**File for bankruptcy or divorce.  Every loan program has a different requirement regarding bankruptcy.  Wait until after the loan closes before filing ANY legal actions.

**Take advice from your mechanic on mortgage programs and rates.  Would you take advice from your loan officer on your car?  When you need expert advise on mortgage rates and programs, ask your mortgage specialist.

IF YOUR REFINANCING DON'T:

**Put your home on the market. Most lenders will not refinance a home that has been listed for sale ithin the last 6 months.

**Begin improvements on your home.  Wait until after the refinance closes.

**Draw off your home equity line.  Your loan approval is based on balances at the time of application.  Drawing money on your credit line can affect your loan approval too.