The Broken Arrow Voice

Broken Arrow, Oklahoma; Where Opportunity Lives. Find out what is happening in the community from city leaders, charities, churches, and business leaders- Homes for sale, social events, politics and more.

Wednesday, November 25, 2009

The Top Questions You Should Ask Your Mortgage Banker!

Most home buyer's have questions about their mortgage and the mortgage process. It is easy to get overwhelmed with the process so keep this list handy to get you started:

  • How much down-payment do I need to buy a house? If you are a Veteran or buying in a rural area you can get 100% financing. The seller is also allowed to pay your closing costs. If you are Native American you may be eligible for a Hud 184 loan. This loan requires as low as a 1.25% down-payment, depending on the loan amount. For an FHA loan, you must put down 3.5%, for Conventional a 5% down-payment is required, and Investment loans require a 20% down-payment.
  • What are Points/Origination Fees? Points and Origination Fees are additional fees paid at closing to lower your interest rate. 1 point is equal to $1000.
  • How do I find out exactly what my closing costs, fees, and other items are when I am comparing mortgage companies and rates? Ask for a Good Faith Estimate. Look at fee lines 800-900. Compare the rate, points/origination fees, and other items within that range.
  • What constitutes a rural development loan? A rural development loan is all based on the population of an area. Owasso and Glenpool, for example, are still rural and are eligible for a rural development loan. USDA Rural Development website can give you more information about any areas you are interested in.
  • How do Mortgage Bankers get paid? Generally, it is based on a commission calculated from the volume produced. The more produced, the higher percentage.
If you have questions about a mortgage, contact Karen Heston at BOK Mortgage, 918-230-9432 or visit her website.

For real estate questions and all your real estate needs, contact Darryl Baskin, McGraw Realtors at 918-259-2600 or www.darrylbaskin.com.