Frequently Asked Questions (FAQs)
In a home buying procedure, which fees are payable by the buyer?
- Origination fees
- Insurance impounds
- Appraisal fees
- Discount points
- Credit report fees
- Escrow fee (split with seller)
- Interest adjustment fees
- Homeowner's Association Fees
- Mortgage insurance impounds
- Prepaid insurance
- One-time mortgage insurance premium (for FHA mortgages)
- Tax impounds
- VA funding fee (for VA mortgages)
- Title insurance policy fee (for lender only)
- Documentation fees
Which fees are payable by the seller? The seller would pay for the following:
- Escrow fee(split with buyer)
- Interest adjustment
- Home warranty program
- Pest inspection
- Title insurance policy fee
- Tax service
- Real estate commission
How can you save money on your mortgage payments?
If you make an additional payment for your mortgage every month, you would pay down your principal more quickly. This also helps you shorten the repayment term and save money on less interest.
If you are a first time home buyer, what are the essential steps that you should follow?
- Save money for down payment and closing costs
- Do some homework
- Check your credit report for probable mistakes
- Become pre-approved for a mortgage
- Collect some data on current real estate deals and make a comparison
- Take the help of a REALTORŪ
What are closing costs?
Closing costs are costs that are incurred by the buyers and sellers for changing ownership of a property.
What is the amount of down payment necessary to buy a house?
Usually, a down payment of 20% is required by traditional lenders. However, you can make a lower down payment in case you obtain private mortgage insurance (PMI). You can make a down payment as low as 5% through utilizing PMI. HFA financing available as low as 3.5% down.
What is an appraisal?
An appraisal is an opinion of the price of a particular property by a certified and independent individual and is required by the lender.
