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The #1 USDA Originator in the Nation 2014 & 2015 and Top Originator 2016!

Frequently Asked Questions

Q : How do I know how much house I can afford?
A : Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.

Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?
A : With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to a loan consultant.

Q : How do I know which type of mortgage loan is best for me?
A : There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your home.  Home Solution Lenders, Inc. can help you evaluate your options and help you make the most appropriate decision.

Q : What does my mortgage payment include?
A : For most homeowners, the monthly mortgage payments includes:

  • 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 homeowners 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.
  • Private Mortgage Insurance (if down payment is less than 20%)
  • Flood Insurance, if applicable(a flood certificate will be obtained to verify)

Q : How much money will I need to purchase a home?
A : The amount of money that is necessary depends on a number of items. Generally speaking though, you will need to supply:

  • 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. May include Broker Fees, Processing, Underwriting Fees, Credit Reporting Fees, and Discount Points.
  • Prepaids: Homeowners Insurance and Pro-Rate Taxes
  • Application Fee: This covers the initial costs of processing your loan application and is credited to you if the loan closes.
  • Appraisal Fee: An appraisal provides an estimate of your property’s value.
  • Title Search and Title Insurance: A title search examines the public record to discover if any other party claims ownership of the property. Title insurance covers you if any discrepancies arise in ownership.
  • Escrow Fee: A fee paid to the closing agent for reconciling the transaction and disbursing the funds to existing lenders, creditors, and third party providers.

Down Payment Methods: What is Acceptable?

  • Gifts. A family member can gift you the money as long as it is not a loan.
  • Borrow from your 401k. You have to pay it back, but you’re paying yourself back so you don’t lose anything.
  • IRA funds. You may be allowed to take out $10,000 per buyer, or $20,000 if you’re married, as a down payment on a home. You must not have owned a home for two years.
  • Grants. Most grants are for low income buyers and are administered locally.

What is NOT Acceptable?

  • Cash.
  • Large Unsecured Deposits.

Frequently Asked Questions