How much money will I qualify for?
A Mortgage Loan Originator can work with you to get you pre-approved before you look for a home. Based upon information you present to the Mortgage Loan Originator at the loan application, they will determine the approximate amount of money that you will be allowed to borrow. You will be “pre-approved” for that loan amount. By allowing your Mortgage Loan Originator to run your credit report and verify your assets and income, your loan application can be submitted to the underwriter for a full credit approval.
How much money will I have to come up with to buy a home?
Depending on the cost of the house and the type of mortgage you get you will generally need enough money to cover three costs: earnest money- the deposit you make on the home when you submit your offer, the down payment, and closing costs.
Earnest money is a deposit you give to your Real Estate agent that goes into an escrow account to show the seller you are serious about purchasing their home. If your offer is accepted, the deposit will be applied to the down payment or closing costs. If it is not accepted, your money will be returned. This dollar amount can vary.
Loan down payments require 10-20% of the purchase price and depending on your credit score and loan structure if you put down lower than 20% you may be required to purchase mortgage insurance. First-time homebuyers turn to HUD’s FHA for help. FHA loans require only 3% down – and sometimes less.
Closing costs – average 3-4% of the price of your home, these costs cover fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you a worksheet with estimated costs including things like down payment, taxes, and homeowners insurance.
What is Mortgage Insurance?
Mortgage insurance is a financial guaranty for the lender that will help to reduce or eliminate a loss in the case of a default by the borrower, and it is almost universally required on loans where there is less than twenty percent equity.
- COMPLIANCE / LICENSING -
Justin Stranere - Licensed Mortgage Originator - NMLS# 134195
PA Licensed by the Department of Banking of the Commonwealth of Pennsylvania * NJ Licensed by the N.J. Department of Banking and Insurance - d/b/a Walter Financial, Inc of NJ * FL Licensed by the Florida Financial Services Commission - d/b/a Walter Financial, Inc. South