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Q:  How do I determine which loan program is best for me?

A:  In order to determine the best loan program for your needs, begin by asking yourself the following questions:

-  How much of a down payment can I afford?

-  How much of a mortgage payment can I afford on a monthly basis?

-  Do I want low payments for a long term or higher payments for a shorter term?

-  Do I want consistent monthly payments?

-  How many years do I want to pay for my home?

-  How long do I intend to own this home?

-  Can I pay more toward my principal balance if my cash flow increases?

Your answers to these questions will help your Loan Specialist compare different loan options and advise you to the best possible option.

Q:  What are points?

A:  Points are a method of reducing the interest rate you would pay on a loan. One point is equivalent to 1% of the loan amount. For example, 2 points on a loan amount of $200,000 would be $4,000. In general, a loan requiring 2 points has a lower interest rate than a loan with 1 point or 0 points, but you would pay a higher amount in fees from the increased point(s) in your closing costs. Paying points may be a more attractive option for those planning to stay in their home for a long time.

Q: How do I compare lenders?

A: There are three items to consider when comparing lenders: the interest rate, points and/or origination fees, and closing costs. When you compare interest rates, points, and closing costs between lenders make sure that you are comparing the rates, points, and closing costs for comparable loan programs. It is also wise to consider the length of time for which the lender has guaranteed the interest rate by locking it.

Q:  Will I have to pay additional fees at closing that were not on my original good faith estimate?

A:  When you apply for a home loan your lender must provide you with a Good Faith Estimate (GFE) that lists all of the fees associated with your home loan. Some lenders will estimate low on the GFE only to charge you additional fees and even charge some fees twice. To ensure that you are not overcharged check your HUD-1 settlement sheet prior to closing and review the finalized list of closing fees.

Q:  How Can I Avoid Delays In My Loan Process?

A:  There are a number of ways to avoid delays in your loan process. It is important that you submit all required conditions to your Loan Processor as soon as possible as your loan cannot close without this information. Be sure to make copies of all documents for your records. Your loan process may also be set back if you make changes to your employment, increase your debt, or change bank accounts.

Q:  Is it better to rent or to own a home?

A: In many instances, renters discover that they can buy a home comparable to the space they are renting with lower net monthly payments. This is not surprising when you factor in all the tax advantages that come with homeownership.

Q:  What if this is the last home I intend to purchase?

A: Most people who plan on retiring and making their last home purchase should consider the lowest rate possible with a fixed payment schedule. This option is ideal for those who plan on living in their home indefinitely on a fixed monthly budget.

Q:  How do I manage my monthly payment schedule?

A:  One of the best things about owning a home is that you know your monthly payments. If you have a fixed rate mortgage, the principal and interest portion of your payments will remain the same every month for the life of the loan. If you have an adjustable rate mortgage, you know how much your payments are allowed to vary with each adjustment period.

Q:  How does a Mello-Roos/CFD Bonds district work?

A:  Mello-Roos Community Facilities Districts, Community Facilities Districts, Community Development Districts, and Metroplex Districts are examples of special assessment jurisdictions formed by local public agencies for the purpose of generating funding for the construction and establishment of public facilities and services. These districts sell bonds that are repaid over a specifieid period of time through the collection of assessments levied on every property owner in the district (except tax-exempt property owners). This type of funding allows schools and other facilities to be built early in the life of a community rather than years after families have moved in.

Q:  What are the tax benefits of home ownership?

A:  There are many tax benefits for homeowners. The interest on your home mortgage as well as certain real estate taxes and mortgage closings costs are often tax deductible. Please consult a personal financial advisor or an accountant for the specific tax advantages you will receive from purchasing a home.