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'What are closing costs?' |
| 'Closing costs are the costs associated with processing the paperwork to buy a house. Closing costs which you will pay at settlement average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won''t be caught by surprise ' |
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Can I apply for a loan before you've found a property? |
| Yes! You have the opportunity to get pre-approved for a mortgage today. A pre-approval will take into consideration your personal information such as income, debt and credit history. If you receive a pre-approval, we will use this information to determine your maximum loan amount. Once you find a property we can complete the remaining pieces of the application |
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Can I bring a personal check to a property closing? |
| No, you will need a cashier's check or certified check for closing. This is to insure that the funds are equivalent to cash |
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Do you need to sell your existing home before you apply for a new mortgage loan? |
| The answer to this question is "No". You can apply for a new mortgage loan before you sell your current home. However, depending on your income and debt levels, you may be required to sell your current home before you can close on your new loan |
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How do I know if I can get a loan? |
| If the amount you can afford is significantly less than the cost of homes that interest you, then you might want to wait awhile longer and save up your money. But before you give up, why don't you contact me? I may be able to help you evaluate your loan potential and find something that fits your budget. I know about many kinds of mortgages the lenders are offering and I can help you choose a lender with a program that might be right for you. Another good idea is to get pre-qualified for a loan. That means you go to a lender and apply for a mortgage before you actually start looking for a home. Then you will know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams |
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I have poor credit and I don’t have much for a down-payment, can I still become a homebuyer? |
| Yes, there are many programs available that may allow you to buy a home. You may be a good candidate for one of the federal mortgage programs that are available. A good place for you to start is by contacting one of the HUD funded housing counseling agencies. They can help you sort through your options. In addition, contact your local government to see if there are any local homeownership programs that might work for you. |
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If you finance 100% of the sales price, why can't you finance the closing costs on a VA loan? |
| The Veteran's Administration does not permit the loan amount to exceed the value of the home. Therefore, 100% of the sales price can be financed, but all other costs must be paid at closing |
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So what will happen at closing? |
| At the closing, you will most likely sit at a table with me, the broker for the seller, probably the seller, and a closing agent. The closing agent will have a stack of papers for you and the seller to sign. While he or she will give you a basic explanation of each paper, you may want to take the time to read each one and/or consult with me to make sure you know exactly what you are signing. After all, this is a large amount of money you are committing to pay for a lot of years! Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a "good faith estimate" of how much cash you'll have to supply at closing, and a list of documents you will need at closing. If you do not get those items, be sure to call your lender BEFORE you go to closing. Be sure to read the HUD booklet on settlement costs . It will help you understand your rights in the process. Don't hesitate to ask questions, I will be happy to answer them to the best of my ability.. |
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What if my offer is rejected? |
| Your original offer is often rejected for one reason or another. But do not let that stop you. Now you begin negotiating. I will help you. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that would not normally be expected. Often, negotiations on a price go back and forth several times before a deal is made. Just remember, do not get so caught up in negotiations that you lose sight of what you really want and can afford |
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What is an escrow account? |
| An escrow account is an account that is established by your lender to pay your real estate taxes, homeowner's insurance and mortgage insurance on your behalf. |
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What is earnest money? |
| Earnest money is the deposit you make on the home when you submit your offer. Earnest money proves to the seller that you are serious about wanting to buy the house. When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies |
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When I find the home I want, how much should I offer? |
| Is the asking price in line with prices of similar homes in the area? Is the home in good condition or will you have to spend a substantial amount of money making it the way you want it? You should get a professional home inspection before you make your offer. I can help you arrange one. How long has the home been on the market? If it's been for sale for a while, the seller may be more eager to accept a lower offer. How much mortgage will be required? Make sure you really can afford whatever offer you make. How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house |
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Where do you go to close on a property? |
| You will go to a local title company or attorney who will perform the closing. All your mortgage documents will be waiting for you at closing as well as any other documents requiring your signature. |
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Why should I buy a home, instead of renting?? |
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