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Q:
Do I have a
choice of points or no points?
A:
Yes, you do have a choice. The primary idea
of points is to pay a fee at closing in
order to lower your interest rate. Depending
upon how long you keep your loan, you may
save substantially more money over the life
of the loan than if you paid a higher
interest rate. Your mortgage professional
can help you decide whether you should
choose to pay points.
Q:
How much money will I need at
closing?
A:
Your closing costs will depend upon the sale
price, the amount of your down payment and
the various fees connected with the purchase
of your home. Closing costs may also include
prepayments of escrow items, including
mortgage insurance, homeowner's insurance
and property taxes, as well as attorney’s
fees, title insurance, etc..
Q:
How much of a difference does
a large down payment make?
A:
The amount of down payment will affect your
monthly payment and the type of loan product
that will best meet your needs. Please try
the True Cost Calculator, with varying down
payments, to determine the monthly payment
that works best for your financial
situation.
Q:
Must I wait to buy a home if I currently
have debt?
A:
Not necessarily. There are four major
factors when considering an application:
your employment status and income, your
assets, your credit record and the value of
the home you wish to purchase. All these
factors are considered when making a
mortgage lending decision. Please do not
hesitate to apply.
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Q: Can
child support be used as income?
A:
Yes, as long as it continues for the next 3
years
Q:
What mortgage expenses are associated with
buying a home?
A:
Your loan counselor will provide you with a
Good Faith Estimate (GFE) after you have
applied for a loan. This disclosure outlines
all costs associated with the loan closing.
Many lenders charge an origination fee and a
processing fee. Other fees associated with a
loan closing may include, but are not
limited to, your attorney’s fees, filing
fees, mortgage taxes, title search and title
insurance and your part of a transfer or
sales tax. You may also be asked to
establish escrow accounts for property taxes
and/ may require prepayment for real estate
taxes and homeowner’s insurance.
Q:
If paying Child Support, is it considered to
be long term debt?
A:
Yes and is figured against your buying
power.
Q:
How many years do I have to be self employed
in order to count it as stable income?
A:
Usually, after two years of self-employment,
we can utilize the net portion of your
income and usually add back in depreciation
and abnormal one-time expenses
Q:
Is savings earned interest considered to be
income?
A:
Yes, as
long as it has been consistent for two years
Q:
Should I get
pre-qualified or pre-approved for a mortgage
before I've found a property?
A:
Getting pre-qualified for a home will help
you determine the price range you need to
search in, and can help make any offer more
attractive to the seller. However, you
should not confuse a pre-approval with a
pre-qualification. During the
pre-qualification process, our loan
counselor will ask you a few questions and
present you with a pre-qualification letter.
This is not a guarantee of funding of a
loan.
The pre-approval process is much more
complete. During a pre-approval, the
Eastpointe loan counselor does all the work
of a full-approval, except for appraisal and
title search. When you are pre-approved, you
will have more negotiating leverage with the
seller. In some cases (especially in
multiple-offer situations), having a
pre-approval can make the difference between
buying a home and not buying a home.
Eastpointe will pre-approve you at minimal
or no cost. We will typically need to check
your credit and verify your income and
assets. Once your loan has been approved,
you can change any of these variables to
match the specifics of your purchase
transaction. You may only lock in an
interest rate only after you have completed
the loan application
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