Serving NJ, PA, DE & FL
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Buying a Home
Get Pre-Approved (Free!)
Questions and Answers
1)What is included in a monthly mortgage payment?
Principle- The amount you pay each month to pay down the balance of the loan.
Interest- The amount you pay each month towards your Mortgage interest.
PMI-Paid only when a borrower has less than 20% equity in the property. PMI stands for Private Mortgage Insurance. It insures the lender in case of default. On conventional loans, PMI may be removed once you have established over 20% equity in your home.
Property Taxes- Property taxes are established by the city and state that your property is in. Property taxes are usually paid with the Mortgage payment to keep everything together. If you have more than 20% equity into the property, you do have the option to pay the property taxes on your own.
Home Owners Insurance- HOI is established by the Home Owners Insurance company you choose. HOI insures your home in case of fire or damage. HOI is allowed to be paid outside your Mortgage Payment and is generally not needed on Condos or any property that is insured by a Home Owners Association.
2)Are HOA (Home Owner Association) fees included in my Mortgage payment?
No. HOA fees are included when determing debt ratio's and approval, but they are not included in Mortgage payments. All HOA fees will be paid directly to your Association.
3)Why do I need to be Pre-Approved before looking at homes?
Aside from the fact that most Realtors will not show you homes without a valid Pre-Approval letter, it is important to know what you can afford. You also will not be able to make a bid without one, and it is always the first step in the home buying process.
4)What information do I need to have in order to get Pre-Approved?
Loan Info-Estimated Sale Price, Down Payment, area you are looking, type of property you are considering, estimated Real Estate Taxes, when you are looking to buy.
Personal Info- Name, Birthday, Social, address(s) for last 2 years, current housing payment (Rent/Mortgage)
2 Year Employment History- Start date/End Date, Employer name, address, phone number, Job Title.
Income-Current Monthly/Yearly income amount.
Assets-Assets listed where down payment & closing costs would come from. Type of account (Savings, Checking, Investment, IRA/401K, Gift), estimated account balance.
Credit Check-Allow us to view a credit check to view credit score and any debts and liabilites that you have.
Real Estate Owned-If you currently own any Real Estate, we need to know address, value, Mortgage balance, and what you intend to do with the property.
