Frequently Asked Questions
What Does A Home Inspector Do, And How Does An Inspection Figure In The Purchase Of A Home?
As we show you in this video, an inspector checks the safety of your potential new home.
Home Inspectors focus especially on the structure, construction and mechanical systems of the house and will make you aware of only repairs that are needed.
The Inspector does n...
What Questions Should I Ask When Looking At Homes?
As you’ll see in this video, many of your questions should focus on potential problems and maintenance issues.
Does anything need to be replaced? What things require ongoing maintenance like paint, roof, heating and AC, appliances and carpet?
Also ask about the...
What Do I Need to Bring to Closing?
Friends, family, lenders, Realtors® and others will give you answers to this question, and many times these answers will be conflicting. How can you be sure you have all that you need? When in doubt, bring it!
Here are a few items you should always bring…from a cl...
What is Homestead Exemption?
The homestead exemption allows you to exclude a portion of your home’s value from the tax assessment and thus provides a reduction in your property tax bill. Generally, a homeowner is eligible for a homestead exemption on their home and land provided
The ...
How Should We Hold Title?
Tenants in Common VS Joint Tenants
In Georgia, owners of real property are called tenants. When there are multiple owners, they are called co-tenants.When multiple ow...
What Is Equity?
Equity is the value YOU own in property such as a house. It’s the difference between what’s OWED and what the property is WORTH in the current market.
The example this video shows - you have a house worth $300,000 today and you owe the bank $200,000. ...
What Are Real Estate Commissions?
Like the video says - real estate agents aren’t paid by the hour!They’re paid a percentage of the purchase price in a successful real estate transaction.
When one agent represents the sellers and another represents the buyers the commission is typically...
What Is “Prime”?
The Prime Lending Rate - sometimes just called “Prime” - is the interest rate that banks charge each other for overnight loans. Some consumer rates - like ARMs - are set in relation to Prime.
In the US, Prime is affected by the Federal Reserve lendi...
What Are Discount Points?
Discount points allow you to lower your interest rate. While this video simplifies things to help you remember, “points” are essentially prepaid interest with each point equaling 1% of the total loan amount.
Generally, for each point paid on a 30-year mor...
What Is An Escrow Account? Do I Need One?
As we show you in this video, an escrow account is an account, established by your lender, to set aside a portion of your monthly mortgage payment to cover annual charges for homeowner's insurance mortgage insurance (if applicable), and property taxes.
Escrow accounts...
What Steps Need To Be Taken To Secure A Loan?
You’ll see some pictures in this video to help you remember later, but the first step in securing a loan is to complete a loan application.
To do so, you'll need the following information.
Pay stubs for the past 2-3 months.
W-2 forms for t...
What Is A Mortgage?
The original phrase “mort gage” translates as “death pledge”! But as this video explains, a mortgage is a loan obtained to purchase real estate.
The "mortgage" itself is a lien - a legal claim on the home or property that secures the promise to ...
What Is Loan To Value (LTV) And How Does It Affect The Size Of My Loan?
While this video simplifies things to help you remember, the loan to value ratio is the amount of money you borrow compared with the price or appraised value of the home you are purchasing.
Each loan has a specific LTV limit. For example: With a 75% LTV loan on a hom...
What Types Of Mortgage Loans Are Available?
This video tells you about the most common types: Fixed Rate, ARM, Balloon and 2-Step.
First, Fixed Rate Mortgages: Payments remain the same for the life of the loan generally 15 years or 30 years. Interest rates remain the same, so payments are predictable.
A second...
What Are The Advantages Of 15- And 30-Year Fixed-Rate Mortgages?
For both, as we show you in this video, compared with other options, with fixed rates, housing costs won’t be affected by interest rate changes and inflation.
With A 30-Year Term: In the first 23 years of the loan more interest is paid off than principal ...
Can I Pay Off My Loan Ahead Of Schedule?
Usually, Yes. Like the guy in the video says, by sending in extra money each month or making an extra payment at the end of the year you can accelerate the process of paying off the loan.
When you send extra money, be sure to indicate that the excess payment is to be ...
What Is Included In A Monthly Mortgage Payment?
The monthly mortgage payment mainly pays off principal and interest. But most lenders also include local real estate taxes homeowner's insurance, and mortgage insurance, if applicable.
If you are refinancing compare what is and isn’t included in your financing o...
How Does The Interest Rate Factor In Securing A Mortgage Loan?
As you’ll see in the video, a lower interest rate allows you to borrow more money than a high rate with the some monthly payment.
Interest rates can fluctuate as you shop for a loan so ask lenders if they offer a rate "lock-in" which guarantees a specific interes...
How Large A Down Payment Do I Need?
There are mortgage options now available that only require a down payment of 5% or less of the purchase price. You’ll see some pictures in this video to help you remember later - the larger the down payment, the less you have to borrow and the more equity you'll ...
What Factors Affect Mortgage Payments?
Well, as this story shows, the amount of the down payment the size of the mortgage loan, the interest rate the length of the repayment term and payment schedule will all affect the size of your mortgage payment.
In bullets:
down payment
loan siz...
What About A Home Located In A Flood Plain?
A flood plain is an area of land adjacent to a stream or river that experiences flooding during periods of high discharge. Watch this video and it’ll make sense.
If you live in a flood plain lenders will require that you have flood insurance before lending any m...
What Are “Home Warranties”, And Should I Consider Them?
You’ll see some pictures in this video to help you remember later, but essentially, home warranties offer you protection for a specific period of time, such as one year, against potentially costly problems like unexpected repairs on appliances or home systems wh...
Are There Special Mortgages For First-Time Homebuyers?
Yes. Like the video shows, lenders now offer several affordable mortgage options which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past.
Lenders may now be able to help borrowers who don't have a lot of money saved fo...
What Is Earnest Money, And How Much Should I Set Aside?
Like the video shows, “earnest money” is money you put down to demonstrate your seriousness about buying a home. It must be substantial enough to demonstrate good faith and is usually between 1-5% of the purchase price though the amount can vary with local...
How Can I Keep Track Of All The Homes I See?
There are some great tips in this video, like:
if possible, take photographs of each house: the outside, the major rooms, the yard and extra features that you like or ones you see as potential problems.
Write things down as you go. And don't hesitate to return for a...
What Should I Look For When Walking Through A Home?
As we show you in this video, in addition to comparing the home to your minimum requirement and wish lists use the HUD Home Scorecard and consider the following:
Is there enough room for both the present and the future?
Are there enough bedrooms...
Is An Older Home A Better Value Than A New One?
Well, as this story shows, there isn't a definitive answer to this question. You should look at each home for its individual characteristics.
Generally, older homes may be in more established neighborhoods offer more ambiance and have lower property tax rates. People...
How Do I Begin The Process Of Buying A Home?
Remember these pointers from the video: start by thinking about your situation.
Are you ready to buy a home?
How much can you afford in a monthly mortgage payment?
How much space do you need?
What areas of town do you lik...
How Does Purchasing A Home Compare With Renting?
Like the guy in the video says, the two don't really compare at all.
The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity take advantage of tax benefits and protect yourself a...
How Do Lenders Decide The Maximum Loan Amount That Buyers Can Afford?
As you’ll see in the video, the lenders consider your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses.
Non-housing expenses include such long-term debts as car or student loan payments, alimony, o...
How Can I Find Out Information About My Credit History?
Watch this video and take a few notes! There are three major credit reporting companies:
Equifax - www.equifax.com 1-800-685-1111
Experian - www.experian.com 1-888-397-3742
Trans Union - www.transunion.com 1-800-916-8800
...
What Is A Credit Bureau Score And How Do Lenders Use Them?
As we show you in this video, a credit bureau score, or “credit score” is a number based upon your credit history that represents the possibility that you will be unable to repay a loan.
Lenders use it to determine your ability to qualify for a mortgage l...
How Are Pre-Qualifying And Pre-Approval Different?
Watch this video and it’ll make sense.
Pre-qualification is an informal way to see how much you maybe able to borrow. You can be 'pre-qualified' over the phone with no paperwork by telling a lender your income, your long-term debts and how large a down payment ...
What Is The Best Way To Compare Loan Terms Between Lenders?
Watch this video and take a few notes!
First, devise a checklist for the information from each lending institution. You should include:
the company's name and basic information
the type of mortgage
minimum down payment required
What Do I Get At Closing?
For most real estate loans, you will receive a Closing Disclosure 3 business days before loan consummation –
which frequently happens at the closing meeting.
At the meeting itself you should receive a copy of your Mortgage Note –
your obligation to repa...
What Is PMI?
This video tells you about it all. PMI stands for Private Mortgage Insurance or Insurer. These are privately-owned companies that provide mortgage insurance. They offer both standard and special affordable programs for borrowers.
These companies provide guidelines ...
What Are 203(B) And 203(K) Loans?
The video puts this in more visual terms, but 203(b) is the most commonly used FHA program. It offers a low down payment, flexible qualifying guidelines limited lender's fees, and a maximum loan amount.
203(k) loans enable homebuyers to finance both the purchase an...
How Do I Make A Home Ready To Sell?
As we show you in this video, start several months before the property is made available. Look through the eyes of a buyer
What needs to be cleaned?
Repainted?
Repaired?
Or tossed?
Ask yourself - or a friend If ...
How Do I Set The Price On My House?
While this video simplifies things to help you remember: your aim is to get the best price AND terms in your market during the period you’re selling.
Market conditions interest rates and competition all matter.
The price you want, and the price a buyer will pay...
How Is A Home Marketed?
As you’ll see in the video, every home and market is a unique situation. Good marketing plans are specific to both. But every plan will include: Preparation Pricing and Marketing Activities.
Preparation takes time - typically, months. Homes must be in “sh...
What Is A Loan Estimate And How Does It Help Me?
A loan estimate lists your loan terms projected payments, costs at closing measures for comparison, including
Annual Percentage Rate and Total Interest Percentage and other considerations that lender may apply to this loan application.
Each lender must supply a lo...
What Is Mortgage Insurance?
Like the video shows, mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages. Like home or auto insurance, mortgage insurance requires payment of a premium, is for protection against loss...
Why Use A REALTOR®
A state license is required to sell real estate. But roughly half of those licensed take the additional step of becoming a REALTOR®.
As we show you in this video, only members of the National Association of Realtors - NAR - are entitled to use that registered ...
What Details Can I Ask Brokers In Advance?
This video tells you what any real estate professional would tell you. Ask them:
How long do homes in my neighborhood currently stay on the market?
How would you price my home?
What data did you use to arrive at that price?
How Do I Evaluate An Offer?
Well, as this story shows, there’s more to an offer than the price tag. Factors you should consider:
Is this offer at, near or above my asking price?
Are there clauses and additions in their offer that change the terms and final price su...
What Is A Counter-Offer?
The video puts this in more visual terms, but basically, a seller can respond to a buyer’s offer with changes - a “counter” - that improves the terms.
You need to put yourself in their shoes and construct a modified offer that you think they might...
How Can I Improve My Home’s Value?
Buyers generally seek the least expensive home in the best neighborhood they can handle. Like the guy in the video says, you want to present a home that fits in the neighborhood but doesn’t stand out too much.
For example if neighbors are all 4 bedrooms, 3 bath...
How Do I Choose The Best Loan Program For Me?
The video puts this in more visual terms, but your personal situation will determine the best kind of loan for you.
By asking yourself a few questions, you can help narrow your search among the many options available and discover which loan suits you best.
...
What Costs or Fees Are Associated With Loan Origination?
Yes, loan origination involves costs and fees. As you’ll see in the video, when you turn in your application you'll be required to pay a loan application fee to cover the costs of underwriting the loan. This fee pays for the home appraisal a copy of your credit ...
What Is RESPA?
RESPA stands for the Federal Real Estate Settlement Procedures Act. This video tells you about it all.
RESPA requires lenders to disclose information to potential customers throughout the mortgage process. By doing so, it protects borrowers from abuses by lending in...
No attorney-client relationship is established by contacting the firm.
No confidential information should be sent via the internet in an unsecure manner. Most email services are not secure.
Our website provides a secure portal to upload documents for delivery to our company.
No se establece una relación abogado-cliente contactando a la empresa.
No se debe enviar información confidencial a través de Internet de manera no segura. La mayoría de los servicios de correo electrónico no son seguros.
Nuestro sitio web proporciona un portal seguro para cargar documentos para su entrega para nosotros.
