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Buying a home/Purchase money loan FAQ index

FREE Mortgage Shopping Report Answers the four critical questions you must know when shopping for a mortgage.

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Appraisals

• Will the lender require an appraisal of the property? If so, will I receive a copy of it?

Annual Percentage Rate (APR)

• What is the APR and how is it calculated?

Closing Costs

• What types of problems typically cause closing delays?
• Which closing costs associated with my purchase are tax-deductible?
• Is it best to pay points up front to reduce the interest rate?
• What is the difference between a zero point and a no cost loan?
• Is it possible to obtain a no cost loan on a purchase mortgage?
• What is the APR and how is it calculated?

Closing Escrow

• How will my real estate agent (or builder) and my lender work together to coordinate the closing?
• Once the offer is accepted, how long will it typically take to close the transaction?
• What types of problems typically cause closing delays?

Condominniums

• I am purchasing a condo (or townhouse or PUD) and I have been told that I need project approval, what is it and who handles it?
• What is the function of the HOA (Homeowner's Association)?
• What expenses are typically covered in the HOA dues?
• If my development (or project) has an HOA, what type of insurance am I expected to obtain independently?
• I am purchasing a condo (or townhouse or PUD) and I am aware that the HOA is currently in litigation with the developer, will I be able to obtain financing in the development?

Conforming Loans / Jumbo Loans

• What is the difference between a conforming and non-conforming (aka jumbo) loan?

Down Payment

• What is the minimum down payment required to buy a home?
• What is the minimum down payment typically required to purchase an investment or rental property?
• Is it best to put down as much money as possible (or as little) towards the down payment?
• Is it possible to borrow 100% of the purchase price?
• Is it possible to get a gift from a relative for 100% of the down payment?
• Can I borrow the funds for the down payment?
• Is it possible to borrow against (or liquidate) my 401(K) or IRA for a down payment and if so is this a good idea?

Finding an Agent

• Do I need a real estate agent and how do I go about finding one?
• Is it important to find an agent that works primarily in the neighborhood where I would like to live?
• Do I need the services of a loan agent/officer when applying for a loan?
• How will my real estate agent (or builder) and my lender work together to coordinate the closing?
• Must I obtain financing from the lender my real estate agent (or the builder) recommends?

First Time Buyer's

• I am a first time buyer, what is the best way to get started looking for a home?
• Do I need a real estate agent and how do I go about finding one?
• Do I need the services of a loan agent/officer when applying for a loan?
• How will my real estate agent (or builder) and my lender work together to coordinate the closing?
• Must I obtain financing from the lender my real estate agent (or the builder) recommends?
• What documentation will the lender typically require from me to process my loan?
• What is the minimum down payment required to buy a home?
• What is the minimum down payment typically required to purchase an investment or rental property?
• Is it best to put down as much money as possible (or as little) towards the down payment?
• Is it possible to borrow 100% of the purchase price?
• Is it possible to get a gift from a relative for 100% of the down payment?
• Can I borrow the funds for the down payment?
• Is it possible to borrow against (or liquidate) my 401(K) or IRA for a down payment and if so is this a good idea?
• What is mortgage insurance and am I required to have it?
• Is mortgage insurance something that I should avoid if possible?
• How can I avoid having to get mortgage insurance on my loan?
• If I do get mortgage insurance, how can I eliminate it?
• What is the difference between loan pre-qualification and pre-approval?
• Is it necessary to get pre-qualified before making an offer on a property?
• Is it necessary to get pre-approved before making an offer on a property?
• How long does it take to get pre-qualified or pre-approved for a loan?
• What is the best way to shop for a loan?
• Will the lender require an appraisal of the property? If so, will I receive a copy of it?
• What is a loan prepayment penalty and is it generally advisable to get a loan that has one?

Flood Insurance

• Must I have flood insurance coverage?
  
  

Homeowner's Associations

• I am purchasing a condo (or townhouse or PUD) and I have been told that I need project approval, what is it and who handles it?
• What is the function of the HOA (Homeowner's Association)?
• What expenses are typically covered in the HOA dues?
• If my development (or project) has an HOA, what type of insurance am I expected to obtain independently?
• I am purchasing a condo (or townhouse or PUD) and I am aware that the HOA is currently in litigation with the developer, will I be able to obtain financing in the development?

Homeowner's (aka Hazard ) Insurance

• What is Homeowner's (aka Hazard) insurance?
• How much Homeowner's insurance coverage will I need?

Insurance

• What is mortgage insurance and am I required to have it?
• Is mortgage insurance something that I should avoid if possible?
• How can I avoid having to get mortgage insurance on my loan?
• If I do get mortgage insurance, how can I eliminate it?
• What is Homeowner's (aka Hazard) insurance?
• How much Homeowner's insurance coverage will I need?
• Must I also have earthquake insurance coverage?
• Must I have flood insurance coverage?
  
  
• What is title insurance and why do I need it?
• What is the best way to shop for insurance?
• If my development (or project) has an HOA, what type of insurance am I expected to obtain independently?

Investment/Rental Property

• When purchasing investment or rental property, what is the difference in rate for non-owner occupied vs. owner occupied financing?
• What is the minimum down payment typically required to purchase an investment or rental property?

Jumbo Loans

• What is the difference between a conforming and non-conforming (aka jumbo) loan?
• What is a super jumbo loan and how much higher (than the average jumbo loan) is the interest rate typically?
  
  

Loan Amount - conforming vs. jumbo

• What is the difference between a conforming and non-conforming (aka jumbo) loan?

Loan Documentation

• What documentation will the lender typically require from me to process my loan?
• Are there limited documentation (aka EZ doc, no income qualifier) loans available?

Loan Process

• Do I need the services of a loan agent/officer when applying for a loan?
• How will my real estate agent (or builder) and my lender work together to coordinate the closing?
• Must I obtain financing from the lender my real estate agent (or the builder) recommends?
• What documentation will the lender typically require from me to process my loan?
• Are there limited documentation (aka EZ doc, no income qualifier) loans available?
• What is the most important consideration when selecting a loan?
• How do I determine which loan program is best suited for my personal situation?
• What is the difference between loan pre-qualification and pre-approval?
• Is it necessary to get pre-qualified before making an offer on a property?
• Is it necessary to get pre-approved before making an offer on a property?
• How long does it take to get pre-qualified or pre-approved for a loan?
• What is the best way to shop for a loan?

Loan Selection

• What is the most important consideration when selecting a loan?
• How do I determine which loan program is best suited for my personal situation?
• Is it best to pay points up front to reduce the interest rate?
• What is the difference between a zero point and a no cost loan?
• Is it possible to obtain a no cost loan on a purchase mortgage?
• What is a loan prepayment penalty and is it generally advisable to get a loan that has one?

Making an Offer

• I already own a home and I am looking to move up, do I need to sell or list my current home prior to making an offer on a new property?

Mortgage Insurance

• What is mortgage insurance and am I required to have it?
• Is mortgage insurance something that I should avoid if possible?
• How can I avoid having to get mortgage insurance on my loan?
• If I do get mortgage insurance, how can I eliminate it?

Neighborhood Information

• How do I find out information about local neighborhood schools?
• How do I find information about specific neighborhood statistics (i.e. population, crime, local services, etc.)?

No Cost Loans

• What is the difference between a zero point and a no cost loan?
• Is it possible to obtain a no cost loan on a purchase mortgage?

100% Financing

• Is it possible to borrow 100% of the purchase price?
• Is it possible to get a gift from a relative for 100% of the down payment?

Points

• Is it best to pay points up front to reduce the interest rate?
• What is the difference between a zero point and a no cost loan?

Pre-approval

• What is the difference between loan pre-qualification and pre-approval?
• Is it necessary to get pre-approved before making an offer on a property?

Pre-Payment Penalty

• What is a loan prepayment penalty and is it generally advisable to get a loan that has one?

Pre-Qualification

• Is it necessary to get pre-qualified before making an offer on a property?
• How long does it take to get pre-qualified or pre-approved for a loan?

Project/Complex Litigation

• I am purchasing a condo (or townhouse or PUD) and I am aware that the HOA is currently in litigation with the developer, will I be able to obtain financing in the development?

Quake Insurance

• Must I also have earthquake insurance coverage?

Rates

• Should I lock my interest rate at loan application or float the rate until closing?
• Will the lender require a fee to lock in my interest rate?
• If I decide to lock my interest rate and rates go down, will the lender give me the current lower rate?
• What is a super jumbo loan and how much higher (than the average jumbo loan) is the interest rate typically?
  
  

Rate Locks

• Should I lock my interest rate at loan application or float the rate until closing?
• Will the lender require a fee to lock in my interest rate?
• If I decide to lock my interest rate and rates go down, will the lender give me the current lower rate?

School Information

• How do I find out information about local neighborhood schools?

Searching for a Home

• I am a first time buyer, what is the best way to get started looking for a home?
• I already own a home and I am looking to move up, do I need to sell or list my current home prior to making an offer on a new property?
• . Do I need a real estate agent and how do I go about finding one?
• Is it important to find an agent that works primarily in the neighborhood where I would like to live?
• How do I find out information about local neighborhood schools?
• How do I find information about specific neighborhood statistics (i.e. population, crime, local services, etc.)?

Super Jumbo loans

• What is a super jumbo loan and how much higher (than the average jumbo loan) is the interest rate typically?
  
  

Tax Considerations

• Which closing costs associated with my purchase are tax-deductible?
• Is it best to pay points up front to reduce the interest rate?
• How can I find a qualified, reputable CPA to advise me?

Title Insurance

• What is title insurance and why do I need it?

Townhomes

• I am purchasing a condo (or townhouse or PUD) and I have been told that I need project approval, what is it and who handles it?
• What is the function of the HOA (Homeowner's Association)?
• What expenses are typically covered in the HOA dues?
• If my development (or project) has an HOA, what type of insurance am I expected to obtain independently?
• I am purchasing a condo (or townhouse or PUD) and I am aware that the HOA is currently in litigation with the developer, will I be able to obtain financing in the development?

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FREE Mortgage Shopping Report Answers the four critical questions you must know when shopping for a mortgage.

www.IVLoanSearch.com ~ a service of Frederic A Din (760) 344-5363 
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