1How do I know what price range of home I can afford?
2What documentation will I need to provide for verification of my home purchase mortgage application?
3Are there any programs for home purchase loans without standard documentation?
4Are there special programs for first time home buyers?
5What will my down payment be?
6What is paid through the monthly payment on my home purchase loan?
7Are there any factors that affect the size of my monthly payment?8What does the interest rate affect when it comes to my home purchase loan?
9What is a second mortgage loan?
1 How do I know what price range of home I can afford?
There are two deciding factors for this area of the home purchase loan. First is your personal financial level. You will need to discuss with the home mortgage lender how much you can afford per month as a payment. Secondly, the maximum amount of money that the lending institution will provide for the purchase of a home.
2 What documentation will I need to provide for verification of my home purchase mortgage application?
Each home purchase loan is different. Most often you will need to provide income information, such as pay stubs, W-2 forms, and tax returns. There may also need to be documents relating to your current residence. The lending officer will provide a list of necessary documentation at the time of application. When you apply, you will be given a mortgage quote of how much you can borrow and what the interest rate will be.
3 Are there any programs for home purchase loans without standard documentation?
Most lending institutions have special programs for those that do not have the necessary documentation. You will need to declare the documentation that you can provide so that a program can be designed to fit your specific needs.
4 Are there special programs for first time home buyers?
Yes, there are several programs that are directly aimed at the first time home buyer. Because there are many obstacles that must be overcome during this process, the lending officer will create a program that will guide you through to the new home purchase you have been dreaming of.
5 What will my down payment be?
The amount of the down payment that you pay is dependent upon the program that you choose. In many cases there are no down payment options available. One must remember that the smaller their down payment the more they will have to borrow for the loan. This can mean a larger monthly payment. The standard for today’s market is a 5% down payment based on the purchase price of the home.
6 What is paid through the monthly payment on my home purchase loan?
Included in the home purchase loan payment will be the interest, principle and homeowner’s insurance for the residence. In some areas the lending company will include the taxes as well as mortgage insurance.
7 Are there any factors that affect the size of my monthly payment?
The amount of your down payment is one deciding factor, as well as the size of the loan on the home. The more you have to borrow the more you have to pay per month. The length of time that you will take to repay the loan also factors into this area. The shorter the term the higher the payments must be.
8 What does the interest rate affect when it comes to my home purchase loan?
The interest rate will differ from lender to lender in most cases. The lowest mortgage rate will allow you to borrow more money with the same monthly payment. The lender must disclose the APR to you before the loan is closed. Your credit score has a direct affect on how low the home mortgage rate will be for your loan.
9 What is a second mortgage loan?
A second mortgage loan, also called a home mortgage refinance loan, is a loan that pays off your existing mortgage and leaves money left over to pay off other debts or for making large purchases. If you already have a home loan but are interested in refinancing, ask your home mortgage lender about the best refinance mortgage rate available to you.
|
