| How
much of a mortgage loan can I qualify for? |
|
You can usually
obtain a mortgage valued at between two and three times
your annual household income, assuming you have an average
debt load.
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|
What is "private mortgage
insurance?" |
|
Private mortgage
insurance may allow you, even if you do not qualify for
an FHA-insured or VA-guaranteed loan, to purchase a home
for as little as 5% down. Such coverage requires a monthly
insurance fee to be paid.
|
|
What are "points"? |
|
Points (sometimes
called "loan discount points") are pre-paid interest on
your mortgage, charged at closing. Each point is equal to
1 percent of the mortgage amount.
|
|
What is "PITI"? |
|
It is simply "Principal, Interest, Taxes and Insurance"
-- the components of your monthly mortgage payment.
|
|
What is closing? |
|
"Closing" is the date set when the buyer, seller and lender,
or their agents, agree to legally transfer the property
and all associated funds, or reference the property.
|
| What
happens at closing? |
|
This is also called the "settlement". The buyer, seller
and lender, or its agents, meet and legally transfer the
property and all associated funds.
|
|
What is "escrow"? |
|
"Escrow" is the process wherein a neutral, third-party is
responsible for carrying out the buyer's and seller's instructions
and paperwork relating to closing.
|
|
What are "closing costs"? |
|
"Closing costs" are those costs that include the mortgage
broker's fee, discount points, appraisal and title search
fees, insurance charges, survey fees and other charges associated
with the legal transfer of the property.
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