|
What should I know about buying a home?
Know what you want. Before you start looking at houses, make a list of what's important to you.
Apply now so you'll know exactly how much you can spend, strengthen your negotiating power and gain an advantage over other homebuyers who are not pre-approved. For pre-approval, call 1-866-4DOWNEY (1-866-436-9639) or apply online.
How much can I afford to spend for my home?
How much house you can afford will depend upon how much cash you can put down and how much you can borrow.
Does refinancing my home loan make sense?
The cost of refinancing includes points and fees and if you have a low, fixed-rate mortgage, you may not want to refinance. Reasons to refinance include
- Lowering your monthly payments
- Taking cash out
- Consolidating your debt
- Switching from an adjustable to a fixed rate loan
- Paying off your mortgage sooner
You can use our refinance calculator to see if it makes sense for you. But for more information, call one of our Loan Experts at 1-866-4DOWNEY (1-866-436-9639) or request information online.
What's the difference between a Fixed Rate, an Adjustable Rate and a Fixed-to-Adjustable mortgage?
With a fixed-rate mortgage your interest rates and monthly payments remain unchanged for the life of the loan. Adjustable-rate loans have payments that can go up or down depending upon market conditions. Fixed-to-adjustable loans offer a combination of fixed and adjustable mortgage. Typically, rates are fixed for a certain number of years and then the loan converts to an adjustable loan.
Which type of mortgage is best for me?
Each borrower has different needs and your Downey Savings Loan Officer will give you the information you need to make the best decision. Some things to consider are:
- How long do you intend to live in your home?
- How much money do you have for a down payment?
- How much can you afford in monthly payments?
- Do you expect your financial situation to change?
For a free, no-obligation consultation to help you choose the loan that is best for you, call 1-866-4DOWNEY (1-866-436-9639) toll-free or request information online.
Why should I pre-qualify for a home loan?
Most real estate agents prefer to work with a buyer who is pre-approved. It gives you more negotiating power with the seller and gives you an advantage over other buyers who are not pre-qualified. To become pre-approved today, call 1-866-4DOWNEY (1-866-436-9639) toll-free or apply online.
How do I qualify for a VA loan?
To qualify, you must be a veteran, reservist, on active duty, or a surviving spouse of a veteran with 100% entitlement.
What is a FHA loan?
A FHA loan is insured by the U.S. Department of Housing and Urban Development (HUD). Eligible buyers can put down as little as 3% of the FHA appraisal value or the purchase price, whichever is lower. Rates are typically slightly lower than a non-FHA conventional loan.
Do I need private mortgage insurance?
Private mortgage insurance (PMI) is often required when you put down less than 20% of the home’s purchase price. Its purpose is to protect the lender in case the borrowers can no longer afford their monthly payments. For the lender, PMI insures that the mortgage will get paid the outstanding balance of the loan. For the borrower, it allows a smaller down payment which may permit you to purchase a larger or nicer home. It can also free up cash to pay down other debts or home expenses.
What are points?
One point equals 1% of the loan amount. The more points you pay, the lower your interest rate. Paying points is optional, but if you plan to stay in your home for a while they may be a good idea. Use our points vs. rate calculator or call 1-866-4DOWNEY (1-866-436-9639) toll-free for a free, no-obligation discussion on how points might affect your purchase or refinance.
What are prepayment penalties?
Some mortgages include a prepayment penalty if a loan is paid off before a certain time. The purpose is to insure the lender gets reimbursed for any upfront concessions they may have offered the borrower.
How much should I expect to pay in closing costs?
Closing costs vary but you’ll receive a Good Faith Estimate a few days after your application is received. You’ll be able to see actual closing costs at least one day before closing. These costs include transfer of title, appraisal fees, credit report, title insurance and inspection.
What documents will I need at closing?
Once your loan is approved, you’ll receive a Loan Approval Letter which will include a complete list of things you’ll need at closing. But typically you’ll need a termite inspection, proof of homeowner’s and flood insurance and a title insurance policy that includes a map of the property’s boundaries. What is the best way to contact us with more questions?
What is the best way to contact you with more questions?
Call us toll-free at
1-866-4DOWNEY (1-866-436-9639)
or contact us online.
|