Q: What are the benefits of Home Ownership?
A: Owning a home has many benefits. When you make a mortgage payment, you are building equity. And that's an investment. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities--like insurance, real estate taxes, and upkeep.
Q: How do I begin the process of buying a home?
A: Start by thinking about your situation. Are you ready to buy a home? How much can you afford in a monthly mortgage payment? How much space do you need? What areas of town do you like? Your home should fit the way you live, with spaces and features that appeal to the whole family.
Q: How is my Realtor compensated?
A: As your Realtor, I am compensated by commission, based on a home selling price. It is important for you to understand that as your buyer's representative, you do not pay a fee to me to work for you. I receive compensation through the listing broker.
Q: What steps need to be taken to secure a loan?
A: The first step in securing a loan is to complete a loan application. To do so, you'll need the following
- Pay stubs for the past 2-3 months
- W-2 forms and/or 1099's for the past 2 years
- Most recent award letter for social security, disability, or retirement income
- Last 2 months bank statements (must include all pages of statement)
- Copy of driver's license and social security card
- Last retirement account statement received
- State Housing loans require last year's tax returns all schedules
- If applicable, copy of divorce decree, child support, alimony or bankruptcy paperwork
- If self-employed, last 2 years tax returns and a year to date profit and loss
- Tax returns for the past 2 years
Q: What happens after I have applied for my loan?
A: If using our in-house lender (Residential Mortgage) you will be notified by end of day to let you know the outcome of your application. It usually takes a lender between 1-6 weeks to complete the entire process and get the final approval to close on your home. Therefore, the lender may ask for more information once the application has been submitted. If the loan is approved, a closing date is set up and the lender will review the closing with you. You can visit our preferred lender (Julia Chism) to apply www.residentialscdailyrates.com
Q: How are pre-qualifying and pre-approval different?
A: Pre-qualification is an informal determination by a lender or mortgage broker stating how much mortgage you can afford. A pre-approval is a guarantee in writing by a lender to grant you a loan up to a specified amount.
Q: What is earnest Money? How much should I set aside?
A: Earnest money is money put down to demonstrate good faith about buying a home. If your offer is accepted, the earnest money becomes part of your down payment or closing. If the offer is rejected, your money is returned to you. I will help you determine a reasonable amount of earnest money to submit with your offer; It will depend upon the purchase price of the home. But, expect a minimum amount of $500.00.
Q: What is a Good Faith Estimate, and How does it help me?
A: It's an estimate that list all fees paid before closing, all closing cost, and any escrow costs you will encounter when purchasing a home. The lender must supply it within 3 days of your application so that you can make accurate judgments when shopping for a loan.
Q: What are closing costs?
A: Fees and expenses, over and above the price of the property incurred by the buyer and/or the seller in the property ownership transfer. Examples are title searches, lawyer's fees, survey charges, and deed filing.
Q: What can I expect to happen on closing day?
A: The closing attorney will review all documentation with you to include the settlement statement. Once you review and understand all the documentation, you'll sign the mortgage, mortgage note, and other documentation. The seller will give you the title to the house in the form of a signed deed. The deed and mortgage will be recorded in the state Registry of Deeds, and you will be a homeowner. You will then be given the keys to your new home!
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