Whether you’re a first timer or have gone through the process of buying a home in the past, you will have a long list of questions. Not to worry! Your loan officer should have the right answers that will guide you and prepare you for each step.
If you’re new to the Roseville area, or you lived here for a long time, and you’re preparing to buy a home, your loan officer should be able to tell you about everything you need to know about a mortgage. From the amount of your monthly payment, taxes and necessary closing costs and insurance, these below topics are things you should ask your loan officer about, and they should have an answer to.
Down Payment
The amount you pay upfront in the down payment is important, but there are other considerations that should be taken into account.
Your loan officer will break down the options based on the type of loan you apply for. Private mortgage insurance and HOA fees also fit into the calculation.
Remember, there are some programs that offer no down payments, so that’s another topic of discussion you can expect when you inquire about down payments. Those hoping to avoid paying private mortgage insurance and acquire a conventional loan can expect to pay more of a down payment.
Mortgage Payment Details
The monthly mortgage payment you’ll make may comprise of principal, interest, taxes, private mortgage and HOA fees.
These factors depend on not only the amount you borrow, but also where you decide to live. Your loan officer can provide an estimate to the bottom-line so you can be prepared for your new Roseville home and new budget.
APR and Interest Rates
When you borrow money, the interest rate and APR will determine how much it’ll cost you to finance your home.
The APR, or annual percentage rate takes into account the interest rate and fees divided by the term of the loan. It’s a good barometer for how much borrowing money will cost.
Your loan officer will be able to break down the variables and explain your APR and what it means for the bigger financial picture.
Mortgage Programs
From down payment assistance programs to mortgages that will lock in a favorable rate to give you time to shop, your loan officer will show you a comprehensive menu of options.
It’s important to review the options carefully to see which plan better fits with both your short-term and long-term objectives. Buying a home is a significant financial commitment, but with the right program, it will also provide some tremendous financial flexibility.
Mortgage Fees
Owning a home requires multiple parties to successfully agree to terms and make a deal.
Facilitating this process will put you on the hook for some closing costs and other associated fees.
Your loan officer will be able to break them down so you’ll know how much of the closing cost you and the other party will be responsible for.
You may also pay for inspections and appraisals outside of the closing costs. Purchasing discount points, if the borrower decides to use them, is another potential cost.
Be sure to fully understand all the associated fees so you’re aware of your options.
For any questions about the mortgage process, or if you’re thinking about buying in Roseville, please contact us!