FAQ

	What do we need to do first if we want to buy a home? Before you start house hunting, it is wise to find out what homes are within your price range. This can be done through the simple process of pre-qualification. To pre-qualify you, a lender or Realtor uses financial information you provide to estimate the maximum mortgage you should be able to obtain. Back toTop
	How much do I need for a down payment? The down payment is the difference between the purchase price and the loan amount, and is due at the time of closing. It generally ranges from as little as three percent of the purchase price to however much you wish to put down. The larger your down payment, the less interest you will have to pay. Back to Top
	Why do we need to get pre-approved for a mortgage? It may allow you to lock in an interest rate for a period of time. Even if rates go up while you hunt for a house, you get the rate you've locked in. You may be better able to bargain with a seller. When sellers receive an offer from a pre-approved buyer, they know that person can secure a loan. Back to Top
	Why do I need a Realtor to go house hunting? A Realtor can save you time and assist you in house hunting by pre-selecting homes that are within your price range and meet your requirements for size, location, etc. A Realtor can assist you in scheduling appointments for you to see homes, even when the owners are not there. A Realtor can give you current selling prices for houses similar to the ones you are considering. A realtor can handle negotiations over the price and terms of your offer. A Realtor can assist in arranging for a home inspection, a necessary step in buying a home. Back to Top
	What do I look for in a Realtor? They should have knowledge about the community you want to live in. They should have experience. They should have patience. They should have full access to the area's multiple listing service (MLS). The MLS gives you the listings of all sellers, not just those represented by your Realtor's company. Your Realtor should have the ability to understand your wants, needs, and personal taste. They should be honest and trustworthy. Your Realtor should have willingness to keep you informed of changes in the market, without trying to push you into buying before you are ready. Back to Top
	What is a Homeowner's Warranty? This warranty covers any repair to the structure, mechanical systems, and major appliances of the house for a certain time, usually a year. A homeowner's warranty is especially useful when buying an older home or one that has been vacant for some time. Back to Top
	What are closing costs? They are costs that the buyer of a home has to pay at the time of purchase. Closing costs usually include an appraisal fee, title search, and lawyer's fee. They may also include "points" and other fees (such as one-year homeowner's insurance and private mortgage insurance, if required). Closing costs are in addition to your down payment and vary slightly from lender to lender. Back to Top
	What is an escrow? It is an arrangement in which a neutral third party holds the funds and documents that change hands during the home selling and buying process. An escrow officer sees that the items in the purchase contract are carried out and appropriate parties are paid. Back to Top
	What do they mean by "points"? Points are the finance charges paid to the lender as part of the closing costs. Each point equals one percent of your total mortgage loan. Points can be negotiable and are sometimes tied to your interest rate. Paying more points to get a lower interest rate may be a good idea if you plan to take a long-term loan. Back to Top
	What is private mortgage insurance (PMI)? It is insurance the buyer carries to guarantee that the lender is paid off if the buyer fails to pay on a mortgage. This is different from homeowner's insurance. It is generally required for all mortgages with less than a 20 percent down payment. The exact amount depends on the amount of the loan and the size of the down payment. Back to Top