How does buying a home compare to renting?
Purchasing a home enables you to receive tax benefits while building equity that you can cash out in the future. Owning a home also gives you the opportunity to truly personalize your space.
Should I prequalify before I find a property?
Yes! Prequalifying first can help you save time and effort before you get too far into the process. You will know upfront how much home you can realistically afford. It also lets real estate agents and sellers know that you’re a serious buyer, which can be an advantage when making an offer.
How does a lender determine how much I can afford?
Your lender will consider a number of factors when determining your maximum loan amount. Some of these include your debt-to-income ratio (how much of your monthly gross income goes toward paying debts), cash available for down payment and closing costs, and credit history.
What is an appraisal?
An appraisal compares the current market value of the home you’d like to buy with other homes in the area that have recently been sold. A recent appraisal is necessary to confirm the property’s current value.
What is an interest rate lock?
This is a guarantee that the interest rate you select for your mortgage loan will not change between the offer and closing and will be the rate used to set your monthly payment. Your loan must be process and close before the rate expiration date.
What are closing costs?
These are the fees and charges due at the closing of a real estate transaction. Both buyers and sellers pay various closing costs. A buyer's closing costs generally include (but aren't limited to):
- Origination fee
- Discount point(s)
- Appraisal fee
- Credit report
- Recording fees
What documents will I receive at closing?
At closing, you’ll sign and receive copies of all legal documents that are recorded and filed for the property you’re purchasing. In addition, you will receive information regarding your monthly mortgage payment and servicing information for your new loan.