Mortgage & Home Loan FAQs
- Earnest Money: The deposit that is supplied when you make an offer on the house
- Down Payment: A percentage of the cost of the home that is due at settlement
- Closing Costs: Costs associated with processing paperwork to purchase or refinance a house, unless the contract negotiates the seller to pay for these costs.
The total seller assist limit is based on the type of mortgage and the down payment percentage. However, the rules allow the seller to pay a percentage of the buyer's closing costs if agreed to by the sales contract. Each mortgage "type" has their own seller assist guidelines. Talk to one of our mortgage loan officers for more information.
Pre-Approval is another option. Depending on who you ask, they will say that it's either a must or not that important. The reason for this is that your Pre-Qualification form, which used to be called an "LSR," has sections that will be checked off depending on how much information you have provided to your mortgage loan officer. So having your Pre-Qualification form in-hand should be more than sufficient proof for your agent and sellers that you have been qualified for a mortgage loan.
- Principal: Repayment on the amount borrowed
- Interest: Payment to the lender for the amount borrowed
- Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like the homeowner's insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.