Copyright © 2006 - 2008 HomesByCharly.com
Homebuyer FAQs
I know there are many types of mortgages - how do I know which one is best for me?
You're right - there are many types of mortgages, and the more you know about them before you start, the better. Most people use a fixed-
rate mortgage. In a fixed-rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The
advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be, and you can plan for it.
Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments
usually start lower than a fixed-rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year.
The adjustment is tied to a financial index, such as the U.S. Treasury Securities index. There are several government mortgage programs
that might interest you, too.
Most people have heard of FHA mortgages. FHA doesn't actually make loans. Instead, it insures loans so that if buyers default for some
reason, the lenders will get their money. This encourages lenders to give mortgages to people who might not otherwise qualify for a loan.
Talk to your real estate broker about the various kinds of loans, before you begin shopping for a mortgage.
When I find the home I want, how much should I offer?
As, your REALTOR®, I can help you here and provide you with the answers to these questions. Here is a list of several things you should
consider:
Often, negotiations on a price go back and forth several times before a deal is made. Just remember - don't get so caught up in
negotiations that you lose sight of what you really want and can afford! I will help to keep you focused.
So what will happen at closing?
Basically, you'll sit at a table with me, the agent for the seller, probably the seller, and a closing agent. The escrow agent will have a stack
of papers for you and the seller to sign. The escrow agent will give you a basic explanation of each paper that you should take the time to
read when you get home. I will be available to assist you if you have problems and you can always call the escrow agent yourself to make
sure you know exactly what you're signing. After all, this is a large amount of money you're committing to pay for a lot of years!
Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a "good faith estimate" of how much
cash you'll have to supply at closing, and a list of documents you'll need at closing. If you don't get those items, be sure to call your lender
BEFORE you go to closing. Be sure to read about settlement costs. It will help you understand your rights in the process. Don't hesitate to
ask questions and I am available to ensure that you get all the necessary information and documentation.
You're right - there are many types of mortgages, and the more you know about them before you start, the better. Most people use a fixed-
rate mortgage. In a fixed-rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The
advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be, and you can plan for it.
Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments
usually start lower than a fixed-rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year.
The adjustment is tied to a financial index, such as the U.S. Treasury Securities index. There are several government mortgage programs
that might interest you, too.
Most people have heard of FHA mortgages. FHA doesn't actually make loans. Instead, it insures loans so that if buyers default for some
reason, the lenders will get their money. This encourages lenders to give mortgages to people who might not otherwise qualify for a loan.
Talk to your real estate broker about the various kinds of loans, before you begin shopping for a mortgage.
When I find the home I want, how much should I offer?
As, your REALTOR®, I can help you here and provide you with the answers to these questions. Here is a list of several things you should
consider:
 | Is the asking price in line with prices of similar homes in the area? |
| Is the home in good condition or will you have to spend a substantial amount of money making it the way you want it? You | |
| probably want to get a professional home inspection before you make your offer. Your real estate broker can help you arrange one. |
| How long has the home been on the market? If it's been for sale for awhile, the seller may be more eager to accept a lower offer. |
| How much mortgage will be required? Make sure you really can afford whatever offer you make. |
| How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In | |
| some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house. |
| What if my offer is rejected? No problem. Sometimes they are rejected! But don't let that stop you. Now we begin negotiating. If | |
| rejected the Seller more than likely will counter your offer. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that wouldn't normally be expected. |
Often, negotiations on a price go back and forth several times before a deal is made. Just remember - don't get so caught up in
negotiations that you lose sight of what you really want and can afford! I will help to keep you focused.
So what will happen at closing?
Basically, you'll sit at a table with me, the agent for the seller, probably the seller, and a closing agent. The escrow agent will have a stack
of papers for you and the seller to sign. The escrow agent will give you a basic explanation of each paper that you should take the time to
read when you get home. I will be available to assist you if you have problems and you can always call the escrow agent yourself to make
sure you know exactly what you're signing. After all, this is a large amount of money you're committing to pay for a lot of years!
Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a "good faith estimate" of how much
cash you'll have to supply at closing, and a list of documents you'll need at closing. If you don't get those items, be sure to call your lender
BEFORE you go to closing. Be sure to read about settlement costs. It will help you understand your rights in the process. Don't hesitate to
ask questions and I am available to ensure that you get all the necessary information and documentation.
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