Mortgage

There are a variety of loans available to every homeowner!

Mortgage Information

You should have a detailed discussion about your personal circumstances with your loan officer to determine the best loan for you.

Generally speaking, your credit score needs to be at 640. However, there are exceptions to that rule so make sure you discuss with the loan officer!

We have multiple loan options to get into your new home with ZERO MONEY DOWN. However, even though the loan is 100% financed, you are still required to front the funds for earnest money (generally 1% of sales price), option fee (generally $100), and inspections (generally range from $400-$700).

Below is a very brief summary of some mortgage and loan types.  Again, for more detailed information, please contact a loan officer directly.

Conventional Loan

This loan requires a minimum of 5% down. If you put 20% or more down, you are not required to escrow your taxes and insurance. Generally takes 30 days to close.

FHA Loan

This loan requires a minimum of 3.5% down. Your MIP will stay with you for the LIFE of the loan if you only put 3.5% down. Escrow always required. Generally takes 30-45 days to close.

203K Loan

Used when a buyer wants to make cosmetic repairs or structural repairs to their home; work is done after closing by the approved general contractor.

VA Loan

This type of mortgage is reserved for our Veterans. ZERO down payment. Must have your DD214 to qualify.

100% USDA Loan

ZERO down payment for this loan! This is a “rural property” loan for homes in rural areas. The approval for this loan is income and dependent-based.

TSAHC & SETH Loans

Down payment assistance up to 5% of loan amount based on credit score, median income, and family size. No area restriction or minimum stay requirements. No repayment is required.

A Guide to Closing Costs

The Buyer Can Generally Be Expected To Pay For:

  • Loan policy and endorsements
  • Record warranty deed
  • Record the deed of trust
  • Courier fee
  • Escrow fee
  • Tax service fee (lender charge)
  • Full-year homeowner’s insurance policy (lender charge)
  • 2-3 months of hazard insurance escrow (lender charge)
  • Tax Reserve (lender charge)
  • Loan application and/or discount fee (lender charge)
  • Appraisal (lender charge)
  • Credit report (lender charge)
  • Lender document preparation (lender charge)
  • Flood certification (lender charge)
  • Mortgage insurance premium – MIP or
  • PMI (lender charge)
  • Miscellaneous loan fees (lender charge)
  • Survey
  • Homeowner’s association dues and fees
  • Guaranty Fee
  • Any other costs as outlined in the real estate contract
  • Inspection fees

The Seller Can Generally Be Expected To Pay For:

  • Loan payoff (per existing lender’s payoff letter)
  • Owner’s Title Policy premium
  • Record release of existing lien(s)
  • Current year real estate tax pro-ration (per contract)
  • Prior year’s property taxes still due (if due)
  • Homeowner’s association dues and fee (if applicable)
  • Escrow fee
  • Commissions (per listing agreement)
  • Any other cost as outlined in the real estate contract
  • Tax certificate
  • Attorney Documents Prep Fee and Deed and Release
  • Homeowner’s Transfer Fee (if applicable)
  • Guaranty Fee
  • Any other costs as outlined in the real estate contract

Negotiated Under Contract:

  • Inspections
  • Termite Work
  • Home Warranty

Mortgage Terms to Know

AMENDMENT
A change – either to alter, add to, or correct – part of an agreement without changing the principal idea or essence.

APPRAISAL
An opinion of the value of a property at a given time, based on facts regarding the location, improvements, etc. of the property and surrounding provided by the appraiser.

CLOSING STATEMENT (HUD)
Itemized worksheet prepared by the Title Company providing all fees associated with the transaction for both the Buyer and Seller.

COMPARABLE SALES “COMPS”
Sales that have similar characteristics as the subject property used for analysis to determine the value of the home.

CREDIT REPORT
A report on the past ability of a loan applicant to pay installment payments.

DEED RESTRICTIONS
Provides any and all restrictions and/guidelines for the neighborhood/community of the home.

EARNEST MONEY
Deposit/down payment made by a Buyer of real property as evidence of good faith; a deposit or partial payment. Will be given to title company at the time of executed Contract.

ESCROW FEE
A fee charged by the title company to service the transaction, to escrow monies, and cover documents. The amount varies with the company; usually split between the Buyer and Seller.

HOME WARRANTY
Several companies offer home warranties with different levels. Can be paid for by Buyer or Seller. Will cover home maintenance issues for one year after the purchase of the home.

HOMEOWNERS ASSOCIATION
Enforces the Deed Restrictions of the neighborhood and ensures all restrictions and guidelines are met. They can assess fees and put a lien on your home if you do not pay the annual dues or are in violation of Deed Restrictions.

HOMEOWNERS INSURANCE
Protects the property and contents in case of loss must be for at least the loan amount or for 80% of the value of the improvements, whichever is greater.

INSPECTIONS
An examination of a property by a professional including pool/spa, well, septic and termite.

INTEREST
Cost of loan funds; always paid in arrears.

LEGAL DESCRIPTION
A description of land recognized by law, based on government surveys, spelling out the exact boundaries of the entire parcel of land. It should so thoroughly identify a parcel of land that it cannot be confused with any other.

LIEN
A form of encumbrance that usually makes a specific parcel of real property the security for the payment of a debt or discharge of an obligation. For example, judgments, taxes, mortgages, deeds of trust.

LOAN DISCOUNT
The points a lender charges; may be paid by either buyer or seller on conventional loans; the number of points fluctuates with the mortgage money market.

MAINTENANCE FEE
Charged by the homeowner’s association as set out in subdivision restrictions.

MORTGAGEE’S TITLE POLICY
Required by the lender to ensure that the lender has a valid lien; does not protect the buyer.

OPTION FEE
Fee Buyer pays for the option to terminate a contract. The option fee is for the option period in which the Buyer has their inspections done. It gives the Buyer the ability to “opt-out” of the contract during the option period if they desire to. If the Buyer opts out of the contract, this fee is NOT refundable. If the Buyer closes the transaction, the fee is applied toward the home.

ORIGINATION FEE
A fee the buyer pays the lender to originate a new loan.

OWNER’S TITLE POLICY
Ensures that the buyer has title to the property.

PITI
A payment that combines Principal, Interest, Taxes, and Insurance – your ENTIRE monthly mortgage!

POINT
1% of loan amount.

POWER OF ATTORNEY
A written instrument whereby a principal gives authority to an agent. The agent acting under such a grant is sometimes called an “Attorney-In-Fact”. If you are unable to attend a closing yourself, you can appoint a Power of Attorney to sign for you.

PRIVATE MORTGAGE INSURANCE (PMI)
Insurance against a loss by a lender (Mortgagee) in the event of default by a borrower.

RECORDING FEES
Charged by the county clerk to record documents in the public records.

SURVEY
“Picture” of the home and property. Confirms lot size and any encroachments, easements, or boundaries.

TAX PRORATIONS
Seller pays their taxes from January 1 to close date by a credit to Buyer on the Closing Disclosure. The buyer is responsible for paying the entire tax bill at year-end.

TAX CERTIFICATES
Certifications issued by taxing authorities showing the current year’s taxes, the last year the taxes were paid, and any delinquencies to be collected at closing.

FREE HOME VALUATION