How much money do I have to come up with 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 -- 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 -- a percentage of
the cost of the home that you must pay when you go to
settlement; and closing costs -- the costs associated
with processing the paperwork to buy a house.
When you make an offer
on a home, your real estate broker will put your earnest
money into an escrow account. If the offer is accepted,
your earnest money will be applied to the down payment
of the closing costs. If your offer is not accepted,
your money will be returned to you. The amount of your
earnest money varies. The more money you can put into
your down payment, the lower your mortgage payments
will be. Some types of loans require 10-20% of the purchase
price.
Closing costs -- which you will pay at settlement --
average 3-4% of the price of your home. These costs
cover various fees and lender charges and other processing
expenses. When you apply for your loan, your lender
will give you an estimate of the closing costs, so you
won't be caught by surprise.
How do I know
which mortgage is best for me?
There are many types of mortgages,
and the more you know about them before you start,
the better: Most people use a fixed-rate mortgage.
In a fixed rate mortgage, your interest stays
the same for the term of the mortgage, which is
normally 30 years. The advantage of a fixed rate
is that you always know exactly how much each
payment will be and you can plan for it.
Another kind is an
adjustable rate mortgage (ARM). With this kind of mortgage,
your interest rate and monthly payment usually start
lower than a fixed mortgage. Your rate can go up or
down as often as twice a year with this type of mortgage.
The adjustment is tied to a financial index, such as
the U.S. Treasury Securities index. The advantage of
an ARM is that you may be able to afford a more expensive
home because your initial interest rate is lower. Talk
to your real estate broker about the various kinds of
loans before you begin shopping for a mortgage.
What will my
mortgage cover?
Most loans have four parts: principal
(the repayment of the amount you actually borrowed);
interest (payment to the lender for the money
you've borrowed); homeowners insurance (a monthly
amount to insure the property against loss from
fire, smoke, theft and other hazards required
by most lenders) and property taxes (the annual
city/county taxes assesed on your property, divided
by the number of mortgage payments you make in
a year).
Most loans
are for 30 years, although 15 year loans are available,
too. During the life of a loan, you'll pay far more
in interest than you will in principal -- sometimes
two or three times more! Because of the way the loans
are structured, in the first years you'll be paying
mostly interest in your monthly payments, paying mostly
principal in the final years
What do I need when I apply for a
mortgage?
You should have:
Social security numbers for both you and your spouse,
if both of you are applying for the loan;
Copies of your checking and savings account statements
for the past six months;
Evidence of any other assets like stocks or bonds;
A recent paycheck stub detailing your earnings;
A list of all credit card accounts and the approximate
monthly amounts owed on each;
A list of account numbers and balances due on outstanding
loans such as car loans, student loans, etc.;
Copies of your last two years income tax statements;
The name and address of someone who can verify your
employment. Depending on your lender, you may be asked
for more information.
• Who is Rosa Tarantino:
My pledge to my clients is to achieve and provide superior customer service.
I am dedicated to providing unrivaled performance and excellence in each
and every transaction that I manage.
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• For
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A small compilation of info you need when buying a house
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Links to local area chambers of commerce, Local vendors and other websites
that may be helpful to you.
•
For Sellers:
A small compilation of info you need when selling a house
Rosa Tarantino
Burgdorff ERA Realtors
545 Millburn Avenue
Short Hills, NJ 07078
Direct Phone: (973) 376-2443
Office Phone: 973) 376-5200
Cell Phone: (973) 517-9594
Office Fax: (973) 376-7092 Email Rosa
Rosa loves meeting people and is
committed to a level of service of the highest degree. She strives to make sure
that her clients not only receive the utmost attention to every detail but also
in a kind and caring manner. Rosa strives to provide clients with the best of
care in a constantly changing environment. She is a "natural" at making
personal connections with people and treating them more like friends than as
clients. It is also important to Rosa to insure that the Burgdorff name continues
to be well respected and maintained with the highest regard. It is within this
business philosophy that Rosa conducts her business. She attributes her high
sense of integrity, family values and love of people to her upbringing.
www.rosatarantino.com is brought
to you by Rosa Tarantino "Selling New Jersey one home at a time.™"
for New Jersey real estate. Short Hills real estate
Real Estate in Short Hills, Maplewood, Springfield, Mountainside, Summit, Montclair
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Most loans have four parts: principal
(the repayment of the amount you actually borrowed);
interest (payment to the lender for the money
you've borrowed); homeowners insurance (a monthly
amount to insure the property against loss from
fire, smoke, theft and other hazards required
by most lenders) and property taxes (the annual
city/county taxes assesed on your property, divided
by the number of mortgage payments you make in
a year).
