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