Nobles Realty

A pre-approval is a simple calculation that tells you the amount you'll be able to finance through a loan and what your monthly payment will be. A pre-approval also provides the "seller" some comfort that you have the financial means to purchase their home.

Once you know the amount of money the bank will lend you, you will need to determine how much cash you should save for the down payment, or if you even require a down payment. This will help define the types of homes that are within your budget. Bear in mind that your monthly costs not only consist of mortgage payments, but will also include at a minimum Real Estate Taxes, Homeowner's Insurance and Primary Mortgage Insurance (PMI). The total amount of your Mortgage note is also known as (PITI) Principal, Interest, Taxes & Insurance.

Securing mortgage financing is an important step in the real estate purchase process. There are lots of options to explore to find the fit that's right for you.

A down payment is generally the money you pay at closing toward your new home. Typically, the more cash you pay as a down payment, the less you will have to pay each month on the mortgage, and the lower the interest costs will be over the life of the mortgage. Many people make a down payment of 3, 5, 10 or 20% of the sales price of the home, but the right percentage for you depends on many factors. One thing that is certain is that saving the money for the down payment can be a challenge. If qualified, there are many First Time Home Buyer and Down Payment Assistance Programs, that will help you on your way to Home Ownership. I have all the resources to help you choose the one that best corresponds to your personal situation.

The types of home financing options available to you toward the attainment of your new home are varied, depending on your personal financial situation and unique needs.

Adjustable Rate Mortgage (ARM): in general terms, this is a type of mortgage in which the interest rate is tied to a certain economic index and may adjust at certain times. Overall, your monthly payment may go up or down at intervals specified in the disclosure associated with this type of mortgage, depending on the current interest rate.

Fixed Rate Mortgage (FRM): in general terms, this is a type of mortgage in which the interest rate does not change during the entire term of the loan. This means that the monthly payments for principal and interest are also fixed for the life of the loan.

Conventional Mortgages: generally, mortgages that are not part of a government-housing program, typically have a limit of $322,700, and are not insured by the federal government.

Jumbo Mortgages: generally, mortgages that typically exceed $322,700 and are not insured by the federal government. These loans command higher interest rates.

Government backed Loans: There are two types of government-backed loans, the FHA and the VA. FHA loans are insured by HUD (the Department of Housing and Urban Development of the United States) and VA loans are insured by the Veterans Administration.

Closing is when Title & Ownership of your new home is officially transferred from the seller to you. Sometimes sellers will pay closing costs. If not, you need to be prepared to pay this additional cost, which can range to be an additional 3-5% percent of the home purchase price. These costs can vary from state to state.

Some other cost that you can gather more information on, as well as general estimates, to prepare your personal finances, typically include:

Earnest Money Deposit: This is a Good Faith deposit which shows the Sellers that you are truely interested in buying their home and that you are willing to make them an offer. Once the Purchase & Sale Contract is accepted this money is deposited into the Holder's Escrowe/Trust Account, The Holder is usually the Selling Agent's Firm, Ex. Nobles Realty & Associates, unless utherwise specified within the contract. This deposit can vary between .5 and 2% of sales price depending on the market, and will be applied to the Down Payment or Escrowe Reserves required by the lender the day of closing. In the event that the Buyer defaults on the contract or decides they no longer wish to persue the purchase of said property, the earnest money automatically defaults to the Seller.

Escrow Account: Is an Account set up by the Lender which usualy occupies 3-5 mo's of Hazard Insurance & 3-7 mo's of Property Tax Reserves which the lender requires the Attorney to collect the day of closing.

If you would like more info. on the financing options that would best suite your needs, please feel free to call Nereyda Nobles, WestStar Mortgage, Branch Manager/Mortgage Consultant Direct: 678-887-5068, Office: 770-729-8113