Here’s a list of commonly asked questions. Click on the question to find the answer. If your question isn’t listed here, feel free to call Caliver Beach at 877-307-8245.
What information or documentation will I need to provide when I apply for a mortgage?
- Legal name, Address, Social Security number and Date of Birth for each borrower so a credit report can be obtained.
- Two years of employment history for each borrower including the company address, a contact for employment verification and income
- Most recent paystubs (reflecting YTD income) covering the last 30 days.
- Two most recent monthly bank statements (all pages) for any accounts you intend to use for down payment, closing costs and any reserves.
- Two most recent years of W2’s, 1099’s and/or Federal Income Tax Returns (all pages).
Depending on your Lender, your individual circumstances and your loan type, you may be asked for additional information.
How do I determine the best mortgage fit for me?
Choosing the right mortgage for your needs and financial situation is an important decision that can have a significant impact on your long-term financial stability. A good mortgage professional can help you assess your financial situation, discuss your long-term plans, help you understand your credit scores and how they impact the different mortgage products that are available. Ultimately, all of these factors play a key role in determining the best mortgage fit.
How do I know if I qualify for a mortgage loan?
Your first step is to make an appointment to speak with a Loan Officer BEFORE you begin looking for homes. They will help you evaluate your loan approval potential. If you qualify, you’ll want to request a Pre-Approval Letter to reflect your purchasing power and show a Realtor that you are a serious Buyer. If you don’t qualify, the Loan Officer will advise you as to why and offer suggestions to improve your chances of qualifying at a future date.
Why should I buy instead of rent?
You’ll love the feeling of having something that’s all yours — a home where your own personal style will tell the world who you are. A thriving vegetable garden in the backyard, a tiled entryway, a yellow kitchen — when you own, you can do it all your way! But there’s more to owning a home than personal satisfaction. There can be many financial advantages as well. You can often deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes, too.* You’re also typically allowed to deduct the property taxes you pay as a homeowner.* This could add up to hefty savings at the end of each year. Finally, when you rent, you’re not building equity in anything. A huge financial benefit of owning a home is that real estate generally appreciates in value and will further increase your equity over and above the equity you will gain each time you make a mortgage payment.
* Consult your tax advisor
How much money will I need to buy a home?
That depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money deposit (the deposit you make on the home when you submit your offer to prove to the seller that you are serious about wanting to buy the house), the down payment (the remaining percentage of the cost of the home that you must pay when you go to settlement – after accounting for your earnest money deposit), and closing costs (the costs associated with processing the paperwork to buy a house).
The more money you can put into your down payment, the lower your mortgage payments will be. That being said, there are mortgage products that require as little as 3% for a down payment. Closing costs, which you will pay at settlement, average 3% to 4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your Loan Officer will give you an estimate of the closing costs, so you won’t be taken by surprise.
How do I find a Lender?
First, ask your friends, family members or colleagues for a referral of someone they’ve worked with before and who did a great job for them. You can finance a home with a loan from a bank, a savings and loan, a credit union, a private mortgage company, or various state government lenders. Shopping for a loan is like shopping for any other large purchase. You can save money if you take some time to look around for the best prices. Different lenders can offer quite different interest rates and loan fees; and as you know, a lower interest rate can make a big difference in how much home you can afford. Talk with several lenders before you decide.
Should I work with a Realtor? How do I find one?
YES, using a Realtor is a very good idea! Ask your friends, family members or colleagues for a good recommendation of someone they’ve worked with before and who did a great job for them. A great financial incentive to use a Realtor is that as a Buyer, you do not pay the Realtor’s commission – the Seller does! All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. An experienced Realtor will be well acquainted with all the important things you’ll want to know about a neighborhood you may be considering (e.g., the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more).
Once you’ve determined your purchasing power after getting pre-approved by a Loan Officer, your agent will help you find your dream home within your price range. With immediate access to homes as soon as they’re put on the market, a Realtor can save you hours of time. When it’s time to make an offer on a home, the agent will advise you and prepare all the necessary paperwork. They are with you through the entire process, including your settlement, ready to answer any last-minute questions you may have while you’re signing the final paperwork.
What is included in my monthly mortgage payment?
Most loan payments have the following components:
Principal and Interest – the repayment of the amount you borrowed based on the terms of your loan.
Homeowner’s Insurance – 1/12th of your annual premium required to insure the property against loss from fire, smoke, theft, and other hazards.
Property Taxes – 1/12th of the annual city/county taxes assessed on your property.
Mortgage Insurance – ONLY if you put down less than 20% on a conventional loan OR have an FHA loan.
In addition to the mortgage payment, what other costs should I consider?
If utilities have been covered in your rent, this will be an additional expense for you. If you’ve had the luxury of calling a maintenance department for any repairs or upkeep, this financial responsibility now belongs to you. Additionally, depending on where you live, you might have homeowners’ association dues or condo association dues. Between your Realtor and your Loan Officer, you will likely be able to learn some of these costs in advance.