Types of Buyers

  • First-time homebuyers - looking for that perfect starter home

  • Investment buyers - looking to invest in anything from condos to multi-family

  • Move-up buyers - for the expanding and growing family

  • Empty-nesters - looking to scale down into a smaller home or retirement area

 
 

You Have Questions, We Have Answers!

 

  • For an FHA loan, the minimum down payment is 3.5% for loans under $417,000. For a VA loan, a zero down payment is allowed for loans under $417,000. For conventional loans, 20% down payment is ideal, to avoid mortgage insurance. For investors 20% is the minimum, however, 25% will get you the best interest rates.

  • A good rule of thumb is to figure 2% of the purchase price, not including points on the loan. This will include impounds for taxes, insurance and prorated interest on your new loan. The actual figure may be lower, however, it is good to budget on the high side.

  • A borrower pays points to lower the interest rate on their loan. A point is equal to 1% of the loan amount. Points can range from .25 to 3 points on a loan. The most common amount for points paid on a loan is 1 point. This would then need to be added to the closing costs mentioned above.

  • Escrow is the process that begins when your offer on a property is accepted. It’s a process that allows all of the necessary documents, monies, and signatures to be collected so change of ownership may take place. Escrow closes when this process is complete. An escrow company is an independent company who handles most of this process. They collect the money from the buyer and the proceeds of the new loan then distributes the money and paperwork at closing to the buyer and seller.

  • The following is a short list of items needed to qualify for a new loan:

    Last two years W-2 forms for wage earners.
Last two pay stubs from all wage earners.

    Last two months statements (all pages) for all asset accounts (checking/savings).

    Last quarterly statement (all pages) from 401k, stock or IRA accounts.

    For self-employed borrowers—last two years complete tax returns.

    An accurate list of monthly payments (car, credit cards, student loans, etc.)

  • First, you will be pre-approved for a loan, in most cases, this will take only a few days. Once you find the perfect home to buy and get your offer accepted by the seller, the escrow period will range from 30 to 45 days.