1.
Where should I start?
|
| Get pre-approved
so you can act quickly. Many agents will not submit or accept your
offer to buy without a pre-approval letter from a lender. |
| |
2.
How much does a pre-approval cost?
|
| Nothing at the
credit union, but many lenders will charge up to $500.00 for an application
fee and a pre-approval letter. |
| |
3.
What loan product will suit my needs?
|
| This is an important
decision in the home buying process. Generally, you will pick a loan
product that matches the length of time you will live in the home
(for example, if you plan to live in the home for 3-4 years a 5 or
7 year ARM or Balloon would be a better fit than a 30 year fixed rate
loan.) |
| |
4.
What is an ARM loan?
|
| Adjustable
Rate Mortgage.
This loan product has a fixed rate for a period of time (usually ranging
from 1-7 years) and then converts to a variable rate loan. |
| |
5.
How much are closing costs?
|
| Typically, 2-2.5%
of the loan amount. These costs can be subsidized by the seller if
negotiated up front. |
| |
6.
How long will the home buying process take from start to finish?
|
| 3-4 weeks. |
| |
7.
Should I get a buyer's agent?
|
| Yes, your agent's
commission is paid by the seller. Your agent will look out for your
best interest, while the listing agent represents the seller. |
| |
8.
What is the difference between an appraisal and a home inspection?
|
| Both cost between
$300-$400, but serve 2 separate purposes. An appraisal is used to
verify value, while a home inspection will point out any functional
problems with the home. |
| |
9.
When do I get the keys to the home?
|
| After your home
loan has been funded, which is usually the day after you sign your
loan documents. |
| |
10.
What is the biggest mistake a borrower can make?
|
| Choosing the wrong service
providers (real estate agent or lender). It is very important to
work with professionals that have your best interest in mind. |
Home Buying
