Figure out how much you can put down on a home, plus what mortgage payment fits your budget.
Your lender will be able to pinpoint a loan amount for which you qualify. This pre-approval will save you a lot of time since you will be able to focus exclusively on houses in your price range.
You may have already started shopping online via real estate portals like Zillow or Trulia. At this stage, it’s a good idea to start working with a buyer's agent and viewing homes.
When you’ve visited properties with your agent and picked out the home you want, it’s time to make an offer. Your real estate agent will know the ins-and-outs of how to structure it.
The closing is the moment for which you’ve been waiting. It’s time to sign a bunch of documents and complete your purchase or refinance. Some docs seal the deal between you and the lender. Other docs seal the deal between you and the seller (if it’s a purchase transaction). Congrats on closing!
Beginning with pre-approval, we will guide you through each step of the loan process, assisting in the application, relaying information quickly and clearly and ensuring your complete confidence, resulting in a hassle free closing.
How much should you put down on your new home? The answer can vary depending on the person or people involved.
Yes, there are benefits to putting down 20% of a home’s final purchase price, including borrowing less, a lower monthly payment, and no mortgage insurance. However, saving enough to put down, say, $50,000 on a $250,000 home is no easy task. With that in mind, it’s not surprising that the average down payment is just 6% for first-time homebuyers and 14% for repeat buyers.
Fixed-rate mortgages are easy to understand. Your interest rate and monthly payment stay the same throughout the life of your loan. Adjustable-rate mortgages (ARMs) are different.
ARMs have interest rates that adjust over time. Typically, the starting rate remains fixed for a set number of years, such as three, five, or even as much as 10 years. After that fixed period ends, the rate changes periodically, typically on an annual basis.
Insured by the FHA, these loans offer low down payment requirements and flexible qualifying guidelines for borrowers with less-than-perfect credit.
Jumbo loans are mortgages that exceed the conventional loan limit. This simply means that you'll need a jumbo mortgage if your loan amount is between $484,351 and $3 million.
Benefits of a Longer Term
A longer term can help keep your monthly payments lower, freeing up cash for home improvement projects or building your savings.
Benefits of a Shorter Term
A shorter term means you'll pay off your mortgage sooner, pay less in interest and can build equity in your home faster
Closing costs, also known as settlement fees, are required by the lender to finalize a mortgage. This refers to the fees involved in administering the mortgage loan after it has been funded. There are a number of costs that you may be responsible for when completing the process of purchasing or refinancing your home. Most of these fees are passed onto the borrower, but sellers will pay a other fees such as the real estate agent’s commission.
The cash-to-close amount is the total of the down payment, closing costs, taxes, homeowner's insurance and any additional fees that need to be paid when it comes time to officially close on the house. Sometimes this amount is rolled into one big check but mostly because these amounts tend to vary there are usually two separate deposits: a large deposit or wire transfer into an account that is opened for escrow (EMD) and then a certificate of funds for the fees directly made payable to the title company.
Once you’ve been pre-approved, you can request what is known as a Loan Estimate. This will give you an idea of the interest rate, monthly payment and closing costs due when actually securing a mortgage through Park Place Mortgage.
Additionally, you’ll get an idea of the sum that may be due for taxes and insurance as well.