The first thing you will want to do when starting the process of purchasing a home is to speak with a reputable lender about a mortgage. The following is a list of ten questions that will help you to evaluate the lender you speak to.

1. What are the exact terms of my mortgage?

2. What are the penalties for paying the mortgage off early?

3. How much interest will I be paying now and in the future?

4. How much of each mortgage payment is going toward the principal, and how much is going toward the interest?

5. What are the closing costs for this process?

6. Can I qualify for a fixed rate mortgage?

7. What is the required down payment?

8. How long is this going to take?

9. What documents do I need to get this process started?

10.  Is there anything I need to qualify for this loan?

You also want to be prepared to put a down payment of 10-20% on the purchase price of a home. However, if you are a first time homebuyer and you qualify for an FHA loan, the down payment could be as low as 3%.

Also, if the down payment is less than 20% the lender will likely require that you have Private Mortgage Insurance (PMI).  Private Mortgage Insurance is an insurance that protects the lender in the event that you default on the loan. It is an extra monthly expense that will be included in your mortgage payment.  Private Mortgage Insurance rates vary, but can be budgeted at 1.0% of the amount of the loan annually.

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Park Forest Enterprises, Inc., Realtors^®

1000 W. Aaron Drive, State College, PA  16803, USA  

Phone:  (814) 238-3431  -  Fax:  (814) 238-4561

Park Forest Enterprises, Inc. is a licensed Real Estate brokerage in the State of Pennsylvania

Park Forest Enterprises, Inc. Real Estate License Number RB041395A

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