How much money do I need in hand to buy a house?
Usually, the purchase of a house requires a minimum down payment of 3% to 5%, plus the funds to cover closing costs, prepaids, escrow, and two payments in reserve. In the case of a FHA Loan, the down payment must be the borrower's own money. Closing costs, prepaids, and reserves can be a gift or loan from a relative.

What are "closing costs" and "prepaids"?
Closing costs are the charges and fees that are paid at closing. Some of these are paid to third parties for survey fees, courier costs, etc. Prepaid expenses include prepaid interest, homeowners insurance, real estate taxes and private mortgage insurance (if the loan to value exceeds 80%). Generally, two months taxes and insurance are also collected and placed in escrow.

How long will it take to process my loan?
Once you have given us all necessary information, you can expect to have your loan processed in 2-3 weeks. FHA Loans, however, can take 30 to 45 days.

What happens when I lock in an interest rate?
You have the option to lock in an interest rate any time during loan processing. If the loan does not close and fund within the lock in period and the rates go up, you will close at the higher rate. If the rates go down, you will close at the locked in rate.

What is "APR" and why is it different from my interest rate?
Your interest rate, commonly called the note or base rate, is the rate used calculate your monthly payments. The Annual Percentage Rate (APR), is the total yearly cost of a mortgage. It is stated as a percentage of the loan amount which includes the base interest rate, mortgage insurance, loan origination fees, points and certain other expenses (if any).

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