Frequently Asked Questions

For most homeowners, the monthly mortgage payments include three separate parts.

• Repayment on the amount borrowed.
• Payment to the lender for the amount borrowed.
• Monthly payments are normally made into a special escrow account for items like hazard 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.

The amount of cash 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.

Lenders review your credit as a means to paint a picture on how well you have handled your past finances and use this information to predict your future financial risk. Having a higher credit score means less risk for lenders, which can mean lower down payment requirements for your loan.