Why Buy With Us?

Pre-Approval

What is the importance of getting pre-approved for a mortgage? How do you go about getting pre-approved?

If you’ll be financing your new home, it’s important to get Pre-Approved before you begin shopping for a new home. This does two positive things for you:

You’ll know exactly how much you can afford so you look for homes in the proper price range

You’ll have a Pre-Qualification Letter from a financial institution that you can submit with an offer after you find the perfect home. Many sellers will not even negotiate an offer without seeing a Pre-Qualification letter.

When you speak with a mortgage rep, you’ll be asked your social security # to pull a credit report. You’ll also be asked about your income, debts and the cash you’ve saved.
Then the mortgage rep will then be able to tell you how much you can spend on a new home. You should receive your answer and the letter within hours, there is no charge for this service.

Shop For Your Loan

When looking for a loan, be sure to get more than one loan quote to get the best interest rate and loan terms for your mortgage. Different banks and companies will offer different loan origination fees and by shopping around you can often times save yourself a lot of money. Be sure to also check your loan officers website for testimonials and information. A good loan officer will offer you many online resources and tools.

Before you lock in your rate, be sure to check the daily rate with the rate your loan officer gives you to ensure you are getting the lowest rate possible. Interest rates will determine how much a mortgage will cost each month and come in fixed or adjustable terms. Mortgage lengths can range from 15 years to 30 years with some loan providers now offering 40 year mortgages as well. The longer the repayment term, the lower the payments will be. However, the interest accrued will also be higher on a longer loan..

Escrow and Closing Costs

What is escrow? Are there any closing costs that buyers should be aware of? What is the process of purchasing a home?

Escrow is the down payment you’ll be making when you sign a contract to purchase a home.  These funds are held, typically by the attorney for the seller, in a trust account and will be applied to the total down payment you’ll be making.

Closing costs can vary – with a mortgage the closing costs can include bank fees, loan origination fees and / or possibly points, which is pre-paid interest on the mortgage which should lower your rate. Your mortgage rep can explain and give you the information so that you can decide if it’s beneficial to you to pre-pay points. Other closings costs could be pre-paid taxes, association fees (if any), attorney fees, filing fees and more. Your attorney and / or mortgage company will provide a detailed disclosure telling you the closing costs

Home Warranty

A home warranty is an insurance policy that typically will cover the furnace, AC system, hot water heater and appliances (refrigerator, stove, dishwasher, washer & dryer). A home warranty usually costs between $400 – $500 for a year, and can be renewed. Should any of the above fail during the warranty period, the homeowner pays a small co-pay (usually +- $100) and the warranty company will either repair or replace the affected unit, at their discretion. Since many purchasers are using all of the cash they have available for the down payment, this covers the new homeowner from having to pay a major repair bill or purchase a new appliance or heating / cooling system.