Homebuyer FAQs

Homebuyer FAQs

In addition to the mortgage payment, what other costs do I need to consider?

Well, of course you'll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. I will be able to
help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or
condo association dues.

You'll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. I
will be able to help you anticipate these costs.

So what will my mortgage cover?

Most loans have 4 parts:

Principal: the repayment of the amount you actually borrowed

Interest: payment to the lender for the money you've borrowed

		Homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required
		by most lenders

		Property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in
		a year

Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you'll pay far more in interest than you
will in principal - sometimes two or three times more! Because of the way loans are structured, in the first years you'll be paying mostly
interest in your monthly payments. In the final years, you'll be paying mostly principal.

What do I need to take with me when I apply for a mortgage?

Great question! If you have everything with you when you visit the lender, you'll save a good deal of time.

You should have:

Social Security Numbers for both you and your spouse, if both of you are applying for the loan

Copies of your checking and savings account statements for the past 6 months

Evidence of any other assets like bonds or stocks

Recent paycheck stub detailing you and your spouse's earnings

List of all credit card accounts and the approximate monthly amounts owed on each

List of account numbers and balances due on outstanding loans, such as car loans

Copies of your last 2 years' income tax statements

Name and address of someone who can verify your employment