| Q. |
How can I get a credit report, good faith, and/or Reg. Z summary of an annual percentage. |
| A. |
Complete our application on-line with the proper information, and this would be done as courtesy service to you and your family. Just Ask Us. |
| Q. |
How do I talk to you regarding my needs. |
| A. |
Email us your information including the best time to call you, and we will get back to you in a timely manner. |
| Q. |
Should we pay points: Points are generally paid only when a borrower needs to achieve a lower interest rate to qualify. |
| A. |
A point is equal to one percent of the loan amount. When a borrower pays a point it can in effect reduce the interest rate by 1/8 to 1/4 of one percent. Borrowers who do not pay points have kept their cost of getting a mortgage to a minimum allowing them to take advantage of smaller changes in the marketplace in the event that interest rates go down. Borrowers who pay points only to get a lower rate will be compelled to maintain that loan and will not be able to justify. |
| Q. |
What is title insurance? |
| A. |
Title insurance protects you from any claim that can be made against the ownership of your home from previous debtors or collectors that may have not been resolved with prior owners. Title insurance protects you and your lender. When a lender grants credit they are using your home as security for the loan amount. Title insurance warrants that no other outstanding lenders have a claim on the asset of question. Title insurance protects your today and tomorrow from events that may have previously occurred. The need for a borrower to renew title insurance only occurs when there is a change in a claim against the ownership, such as a new mortgage or a change in ownership, or such as the sale of all or part of the properties interest to another party. In either event, title insurance is generally needed. Title insurance is typically ordered by either an Attorney in the event of a sale, or by the lender in the event of a refinance or mortgage request. Ask your attorney or mortgage consultant for a copy of your title report. |
| Q. |
What are closing costs? |
| A. |
Closing costs are the itemized costs associated with the processing and the closing of a loan. They include underwriting, processing, tax service, title insurance, doc preparation, and commitment. Fees may vary in amount and type from lender to lender. Please note that you can negotiate some of these fees from time to time. Ask your lender in advance what the entire closing costs are and what they are for. Find out if any can be eliminated. |
| Q. |
What is a tax escrow? |
| A. |
Tax Escrow is typically a non- interest bearing savings account for your property taxes. Borrower's who have a loan to value that is higher than 80% will automatically be required to maintain a tax escrow. The tax escrow payment is included each month in the mortgage payment. The borrower pays 1/12 of their tax bill with each mortgage payment. When the tax bill is due, the escrow account then pays the tax bill for the borrower. If you wish to waive having an escrow, you may, but there generally will be a charge of 1/4 to 3/8 of a point. |
| Q. |
Is it better to use a bank or a broker: A bank pools from regional sources, while a broker pools from a wider variety of regional and national sources. The result is lower pricing and better product variety. |
| A. |
A borrower should compare product and price between a broker and bank of their choice. Generally the broker will be able to offer a better deal. Make sure you compare all aspects including closing fees and application fees. |
| Q. |
What are the benefits of using a real estate agent? A real estate agent can provide much in the way of quality information to a prospective buyer. |
| A. |
A professional agent will have detailed community
information on local schools, organizations, employment opportunities,
day care, police and fire departments. They will know about the municipality
as it relates to home owners issues, such as garbage removal and
water services. They should also be able to provide detailed information
regarding previous sales of homes that are in the area you are looking
at. See our recommendation. |
| Q. |
Do we need an Attorney to buy a home? |
| A. |
Yes. We recommend that you use an attorney when purchasing a home. A good attorney will make sure that your rights as a buyer are protected. In addition, they have the experience of dealing with all the documents related to closing. Make sure you get an attorney who has been referred to you. |
