While finding the financing package that best suits your needs can be a complicated process, your REALTOR® can help you find the financing method that works for you.

Home financing is available from mortgage companies, savings and loan associations, banks, credit unions and others.  Each will have its own rules, rates and fees.  When you compare financial institutions, be sure to look for variations in the way mortgages are offered — distinctions that can mean dollars of difference to you.  You will want to research the various lenders in your area to see which best fits your financial situation.

The number and variety of financing options can seem overwhelming at first, but most fit in one of these main categories.  We review some of the different types of loans below.

Conventional Financing: Conventional mortgages are labeled as such to differentiate them from government-backed loans, such as FHA or VA loans.

Federal Government Programs: Programs sponsored by the Federal Government through the Federal Housing Authority, Veterans Administration or Farmers Home Administration.

Alternative Financing: Various alternative arrangements for home financing made by the buyer that can incorporate elements of Conventional financing programs.

Remember that financing options are affected by local and regional real estate and banking practices and in some areas by local and state law.

Questions to ask the lender

Before you make your home financing decision, you should be familiar with your options.  Questions you should ask of your lender include:

• What are the differences between the various types of adjustable-rate loans and fixed rate loans?
• Is the mortgage open-ended?  Can you borrow up to the amount of principal you’ve paid to make home improvements?
• Will mortgage insurance be required for loans other than FHA-insured or VA guaranteed mortgages?
• How much principal must be paid before the insurance requirement is dropped?  What are the premiums and are the premiums refundable if you prepay the mortgage?
• What reserves, such as those for property taxes or hazard insurance, are required?  How long must you pay into these reserves?  At some point, will you pay these costs directly?
• What fees will be charged at closing, including such things as points, loan origination, abstracts, attorney’s fees, appraisals, termite inspection reports or credit reports?

Conventional Financing

Conventional fixed-rate mortgages: This traditional, “tried and true” mortgage option is a loan with a constant interest rate and level, equal payments during a set period of time — most commonly, 30 years.  The biggest selling point of fixed-rate loans is predictability, and they are particularly suited to people with steady incomes.

Adjustable-rate mortgages (ARMs): As the name implies, the interest rate on an adjustable-rate mortgage changes throughout the term to stay current with the present interest rates.  ARMs are most popular when rates are relatively high and appear to be dropping and when the difference between the ARM and the fixed-rate is greater than 2 to 3 percent.  Different lenders offer variations in the front end of their ARM plans, such as the points you pay or discounted initial rates.

To make a useful comparison of an ARM rate, consider the index upon which the rate is based, the margin or spread between that index and the rate paid, and the intervals at which the rate and payments are adjusted.

Note: Always look at the index plus the margin when comparing ARMs.  The larger the margin, the less likely the rate you pay will go down, even if the interest rates drop.

Jumbo loans for bigger homes: Mortgages are called jumbo when they exceed the maximum limit set by the Federal National Mortgage Association (FNMA, or “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (FHLMC, or “Freddie Mac”), the largest national investors in mortgages.  Currently, this limit is $300,700.

Because of the greater risk to the lender by the higher-than-average loan amount, some lenders charge slightly higher interest rates for loans in the jumbo category.

Balloon mortgages: Balloon mortgages are fixed-rate loans.  Although based on a longer term, the mortgage must be paid in full with a balloon payment, usually in five to seven years.  The advantage is that interest rates are generally set well below current market rates.  Many borrowers of balloon mortgages refinance their loan before the balloon payment is due.

Two-step loans: Two-steps are adjustable rate mortgages that have only one adjustment during the loan term.  They let you take advantage of the reduced start rate of an ARM while still enjoying the security of a fixed rate for some time.

Because the adjustment does not usually occur until several years into the loan term, two-step loans are particularly attractive to buyers who do not plan to stay in their new home more than a few years.

Federal government programs:

Federal Housing Administration (FHA) insured loans: Lenders offer FHA mortgages on a new or existing single-family home for as little as 3 percent down.  FHA mortgages are also assumable.  Sometimes a premium is required when the mortgage is assumed, then refunded when the note is paid off.  Down payments are usually low.

Veterans Administration (VA) guaranteed loans: The Veterans Administration guarantees lenders against loss if a property is foreclosed due to default.  These assumable loans are available to eligible veterans and may be used to buy, refinance, construct or repair a house.  If the VA property appraisal is less than the sale price, the borrower pays the difference as a down payment.

Farmers Home Administration (FmHA) loans: The government makes these loans available to persons of moderate to very low income in rural or non-metropolitan areas.

Alternative Financing

Lease/purchase agreements: Borrowers can lock in the price of a house today and postpone financing for 12 to 18 months with these agreements.  The borrower gives the seller a deposit which is applied to the purchase and makes monthly rental payments.  Lease/purchase agreements are used by sellers who want to keep a home occupied and receive rental money after they’ve moved out, and by buyers who are not in a position to commit to a property at a particular time.

Installment contract: Buyers and sellers work out a contract which states a down payment, interest rate and term.  Some contracts have long terms; others are short-term with balloon payments.  Regulations about title transfer in a contract sale vary from state to state.

First mortgages from relatives or others: Sometimes relatives or private investors will purchase a home outright then offer a borrower a first mortgage.  The terms are worked out to the mutual satisfaction of both parties.

Note: The Internal Revenue Service may impute higher rates on the lender for loans arranged below market rates.

Second mortgages: These are used when a borrower needs additional financing to buy a home.  This mortgage may be financed by the seller, another lender, relative or investor, and terms are negotiated between buyer and lender.  Often, second mortgages are used when a borrower assumes a guaranteed first mortgage with a lower interest rate and needs to make up the difference between the loan and the sale price.

Equity financing: An equity plan allows buyers to buy new homes by borrowing against a portion of the equity in their present home.  A six-month “bridge” is secured on which no monthly payments are required and that money is used to purchase the new home.  When the present home sells, the loan is paid off with the proceeds of the sale.  If the home doesn’t sell within six months, the owner may renew the loan or choose from other “back-up” options.

Depending upon your situation, there may be other Financing Options available.  You should rely on the expertise of your REALTOR® and Loan Officer during the critical final stages of the home buying process.  He or she can answer questions, serve as your representative, and attend to the important details that affect your purchase.

Contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

Two things can add to your peace of mind as you enter the final stages of home buying: home inspections and home warranties.

Pre-Closing

A professional inspection of a home prior to closing can lessen the chance for surprises.  Even if you’ve arranged to have an inspection, you should still include a final inspection agreement in your contract to take a “walk-through” of the property immediately before the final papers are signed.

Post-Closing Protection

A home warranty can protect sellers before the closing and buyers after the closing against the failure of major home systems during the warranty period.  In some cases, this agreement between buyer and seller decide who will pay to repair or replace items such as cooling units, plumbing and electrical systems and appliances for 30 days after the sale.  Ask your REALTOR® if this can be include in the contract.

Contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

Your lender will need a complete picture of your financial situation to help determine how much home you can afford.  You and the loan officer will fill out the Uniform Residential Loan Application, a multi-page document that asks in-depth questions about you, your income, your assets and liabilities and your credit as well as a description of the property you wish to buy.  The process will go much smoother if you have everything with you when first meeting with the loan officer.

Determining your down payment

As part of the application process, you must state how much of a down payment you can make.  Obviously, the bigger the down payment, the smaller the mortgage.  As little as three percent down may be possible.  Qualified veterans may be able to obtain a loan with no down payment at all through the VA home loan program.  On loans with less than 20 percent down, you may be required to purchase private mortgage insurance (PMI) which protects lenders against losses.  The cost of PMI will be reflected in slightly higher monthly payments and, possibly, an additional fee at settlement.

What you will need for the application:

• Agreement or contract of sale
• Employment history
• Income information
• Source of down payment and closing costs
• Credit information
• Real estate owned
• Application fee

There are special situations regarding self-employment, rental income and the like which require additional information.  Your loan officer can tell you what else you will need.  If you are in doubt, feel free to call and ask.

Application fees

Typically, lenders charge an application fee which covers the cost of a credit report, an appraisal of the property, and possibly, determining if the property is located on a floodplain.

Some lenders may not charge an application fee, but may increase the loan rate or other costs to cover these charges.  It’s important to have a clear understanding of the services covered by the fee and how they may be paid.

Application legal requirements

Within three days of your loan application, your lender is required to furnish you with a copy of Settlement Costs, a booklet prepared by the Department of Housing and Urban Development.  It describes the settlement process and the typical costs that buyers and sellers often must pay at settlement.  You may even want to ask for a copy before applying because the information is valuable.

You’ll also receive a Good Faith Estimate of settlement charges, based on your lender’s past experience in the area where the property is located.  These charges may include:

• Loan origination fees are a percentage of the loan that covers the lender’s administrative costs.  The loan discount, called points (with each point being 1 percent of the loan), is extra interest paid to the lender to make up the difference between market interest and the interest of the loan.
• Other charges at closing may include the costs of a survey, appraisal or inspection, as well as the lender’s services in obtaining mortgage insurance for you.  If you assume a mortgage, you’ll pay an assumption or transfer fee.
• Charges for fees include title/abstract searches and recording and transfer charges.
• Mortgage interest, the first year’s hazard insurance, and first year’s mortgage insurance (if required) are paid to the lender in advance.
• Reserved deposits used by the lender to pay for hazard insurance, property taxes and possibly mortgage insurance are paid at this time.
• Commissions and other fees include a variety of services, such as document preparation, notary services, handling the schedule, warranties and others.

In the Event your Loan is Denied

Lenders have 30 days from the application date to explain in writing why you were denied a loan.  If you were denied because of credit, you are entitled to a free copy of your credit report.  If there are any errors, you may challenge them.  Some lenders have a second level of review.  You also have the right to apply at another institution.  This does not guarantee success; you may need to correct problem credit.

Contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve. (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

When you find the right home, your REALTOR® should take you through a step-by-step process to make the purchase.  You know the seller’s asking price, now it’s your turn to make some important decisions.

Preparing to Offer, Preparing to Negotiate

You may be in a strong bargaining position to make an offer below asking price if, for example, you are paying cash, or have been pre-approved for a loan.  Conversely, in a “hot” seller’s market, you may have to offer above the asking price to beat other bids.

Your bargaining position is affected by the reason the house is being sold.  For example, the seller is moving for job-related reasons or is divorcing and is in a hurry to sell, or is in no hurry and can wait for the right offer.  Your Agent should help you understand your negotiating position, and the following offer factors:

• Decide how much you should offer.  Consider factors such as the home’s length of time on the market, reasonableness of price, availability of financing and other costs.
• Know what happens to your earnest money.  The earnest money deposit shows that you’re serious about buying the home. This deposit is held by a third party such as your REALTOR®’s company, a title company, or escrow agent until the sale is closed or contract is broken.  If you buy the house, it is applied to the down payment or closing costs.  If you fail to buy the house after the seller has accepted your offer, he or she may have the right to keep this deposit.
• Require the seller to do a title search to prove the title is clear.  The title should show no substantial claims or liens against the property.  The type of proof varies by area, and your REALTOR® can tell you which kind is used in your area of interest.
• Decide what type of deed you want.  You’ll most likely specify that the seller convey the property to you with a general warranty deed that transfers ownership rights (or title) to you.
• Decide what conditions (also known as contingencies) you want to place on buying the house.  Your purchase may be made contingent on obtaining financing, a building inspector’s satisfactory report or selling your present home.  Real estate contracts today already include many of these standard real estate contingencies.
• Spell out what you’re buying in the contract.  Common items to be specified include appliances, light fixtures, shades and drapes, storm windows, and flowers, shrubs and trees.
• Determine what special provisions should be included, such as for property taxes, insurance costs and utility bills.  Read all the small print carefully.
• Determine the closing date and possession date you want.  Allow yourself plenty of time for financing and all the paperwork in the transaction.

The Seller’s Response

Your REALTOR® will take the offer to the seller or seller’s agent.  The seller will either accept, reject, or counter your offer with changes in some of the terms.  You may either sign or counteroffer at this point.

Negotiating Counter-offers

Your REALTOR® should negotiate the often emotional, sometimes maddening details of offers and counter-offers.  These can include whether the buyer or seller pays points, who pays for any repairs to the property, or the buyer wanting to include the pool table in the living room.  During this phase, your REALTOR® should be a steadying, objective presence, helping both buyer and seller look beyond the emotions that often drive negotiating tactics.

Withdrawing an offer

In most cases, you can withdraw your offer up to the point when it is accepted.  If you do wish to cancel the offer, it’s a good idea to consult with a real estate lawyer.  You don’t want to lose your deposit, or be sued for damages perceived by the seller.

Coming to terms

When you both agree to the terms, you should sign the document; it then becomes a valid contract.  (In some areas, a binder agreement is required before the final contract is drafted; ask your REALTOR® if this applies to you.)

If not, you are free to walk away, and cannot be held liable for the contract.  Only when an offer is accepted and signed by both parties is the contract binding.

Start of right, contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve.  Click here.

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

Your REALTOR® should show you the homes that meet your needs and weed out the ones that don’t.

He or she will make arrangements for you to see only those homes that match your requirements, so your time is well spent.  Remember to record your impressions about the homes you visit.

A key benefit of working with a great REALTOR® is that you’ll be informed about homes that are new on the market or those with price changes.  He or she will identify all the potential sellers in your market by working with the entire real estate community – not just those who list with their company.

When visiting individual homes, your REALTOR® should remind you to keep several factors in mind, including:

Evaluating the home’s Exterior:

• Do trees and shrubs appear healthy?  Are large trees at least 20 feet from the house?
• Is the lot sloped for proper drainage?  Are there low spots near the house?
• Do outdoor electrical outlets have ground fault current interrupters to prevent shock?
• Is the outdoor lighting adequate?
• Are there outdoor faucets or a sprinkler system?
• Are sidewalks and driveways in good condition?  Will water drain off them?
• Is the house’s surface in good repair?  Are there cracks where materials meet at two walls or at windows and walls?
• Do windows and doors sit plumb and square?
• Is the roof free from sags and dips?  Are shingles in good condition?
• Are gutters in good shape, with tight seams and do downspouts point away from the house?
• Do foundation walls have cracks larger than 1/4-inch wide?

Considering the home’s Interior:

• Is the home divided into three distinct zones for working, living and sleeping?
• Are eating areas (including those outdoors) easily accessible from the kitchen?
• Does traffic through the kitchen flow outside the work area?
• Are the stove, sink and refrigerator just steps apart for an efficient access?
• Do open appliance doors block doorways, cabinets or each other?
• Do bedrooms have two uninterrupted wall surfaces for easy furniture arrangement?
• Are baths accessible without having to cross a bedroom or other living space?
• Does the main entry lead guests directly to the living room or make them figure out which way to go?

Even after a careful review, when everything “feels right” you should take the extra step to make certain everything “works right”.  When you’re seriously considering buying a particular house, keep these factors in mind:

• Hire a professional building inspector to make sure the house is in sound condition.  Use his or her report to make informed decisions.
• Ask your REALTOR® to include a final inspect prior to closing in the contract.  This warranty protects you in case of major structural or mechanical system problems that may occur after the property was inspected by a building inspector.
• Decide which flaws you can live with and which you’d prefer to have repaired.  You may also be able to refinance some repairs in your mortgage.

Start of right, contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve.  Click here.

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

Next you’ll want to define your needs, tastes and preferences for your new home.  Your REALTOR® should assist you in this process and by discussing this now, you’ll save plenty of time in the house-hunting process.  Your REALTOR® will show you only the houses that fit these requirements:

• Describe the style of house you like, whether it be a two-story, contemporary, ranch or something else.
• List your priorities in home features, such as a one- or two-car garage; gourmet kitchen; a family room or a formal dining room.
• Think about your lifestyle.  If you don’t like yard work, ask your REALTOR® to show you condominiums, townhouses or single-family homes with smaller yards.

Choosing a neighborhood:

Concrete and materials may determine the cost of a home, but a neighborhood determines value.

• Consider the identity of the neighborhood.  The overall impression given by an area is key to its value.
• Drive through and around the neighborhood.  Value is enhanced by other well-maintained properties.  Conversely, be cautious of areas with unkempt yards and homes, and businesses mixed in with residences.
• Ask your REALTOR® about the property tax assessment in the area, including any special assessments or pending bond issues.
• Pay attention to neighborhood zoning.  Good residential communities are zoned to keep out commercial and industrial users.  Ask about other regulations in the neighborhood, such as on-street parking.  Find out if this area is governed by any covenants.
• List which community services are important to you.  Do you need to be close to shopping, schools, church, or a hospital?
• Get an idea of the neighborhood’s character by talking with people who live there.

Factor in the costs of commuting as you’re looking at neighborhoods.  If your daily commute to work, school, shopping or other locations will be very long, you may have greater automobile expenses, such as gas, maintenance and insurance.

Contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

Most people have a general idea of how much they feel comfortable spending.  It’s equally important to know how much your lender calculates you can afford.  With assistance provided by your REALTOR®, you’ll be able to better prepare the many details required during the financing application process.

• Evaluate your financial situation as the lenders do.  Typically, your total monthly housing costs of mortgage principal and interest payments, property taxes and hazard insurance (PITI) should not exceed 28 percent of your gross monthly income.  Or, housing costs plus any outstanding monthly long-term debt should not exceed 36 percent of gross monthly income.
• Determine how much your financial institution is willing to lend you.  Our chart below can help you get a good idea of the capital you’ll have to work with, but you should call on your Agent for help during the pre-qualification process.
• Know how much you can afford in monthly payments.  Lenders factor in sales price and down payment, but place more importance on how much you can handle monthly.
• Become a pre-approved buyer.  Pre-approval gives you more buying strength since the lender makes a credit decision and pre-approves you for a certain mortgage amount.  You’ll know what price range your lender will approve — and you’ll be in a position to make an offer as soon as you find the right home.

Mortgage Chart – Your guide to affordability

Your mortgage power may surprise you.  This chart shows how much house you can afford at any given interest rate.  To use it, simply find the monthly payment you can afford and read across to the nearest current interest rate.  The point where the two intersect shows you how much mortgage that monthly payment will buy.

It is important that you obtain a mortgage pre-approval.  This is an essential time-saver when you come upon the house you want to buy.  Mortgage pre-approval is like securing a loan before you find a house, and it’s a real peace of mind to know exactly what you can afford.

Payments below are based on a 30-year amortization and include principal and interest only. Ask your REALTOR® what to add for taxes and insurance.

Depending upon your situation, there may be other Financing Options available.  You should rely on the expertise of your REALTOR® and Loan Officer during the critical final stages of the home buying process. He or she can answer questions, serve as your representative, and attend to the important details that affect your purchase.

Contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

Why and when should I buy a home?

Today, home Buyers have more choices than ever before.  You can choose financing options that are flexible and affordable, home styles that fit a variety of lifestyles, and professional services that make the process fast, effective and enjoyable.

Here are some facts about buying a home that you should remember:

• Buying a home can be a good investment opportunity.  A house offers leverage and the possibility for appreciation in value.  And, you can use this investment while it’s working for you!
• You can’t afford to overlook the tax breaks of home ownership.  Since mortgage interest and property taxes are deductible, home ownership can save you money each year.
• Young people aren’t priced out of the market.  Figures from the National Association of Realtors put the average age of first-time buyers at 32 years old.
• Renting doesn’t protect you against rising prices.  Rental units are just as susceptible as houses to increases in taxes, insurance, utilities and other costs.  Landlords will pass along these increases to the tenants.
• Waiting for prices to drop can work against you.  Home prices fluctuate from city to city, and go up more often than they go down.  Don’t put off buying a home waiting for prices to come down.

Starting the home buying process:

• Choose a professional who specializes in residential real estate.  She or he should have specific knowledge of the local real estate and mortgage markets.
• Consider references carefully.  An experienced, confident REALTOR® can provide you with names of recent buyers in your market with whom he or she has worked.
• Select a professional who will listen to you.  Your REALTOR® should be interested enough in you to find out about you and your housing needs and preferences.
• Select a professional who puts service first.  Strong customer service is key in today’s real estate business.  Find a REALTOR® who provides a service that goes above and beyond giving buyers only what they expect and need.

Your REALTOR® can show you any house that’s for sale in your market – not just the homes listed by their company.  If you see a house for sale that you like, arrange a viewing through them.

Commit yourself to working with one REALTOR® who can learn your likes and dislikes in homes and make your home-buying process much easier.

Contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

A guide to achieving the American dream

Buying a home, whether it’s your first or third, is a big and important task.  The goal of your REALTOR® should be to guide you through each step, making it as stress-free and enjoyable as possible.  With a well organized, proven approach to the home-buying process, your REALTOR® can help you find the home of your dreams.

A good REALTOR ® should help you through what can sometimes be a complicated and time-consuming process, with special assistance in these areas:

• Making the Decision to Buy a Home
• Buying an Affordable Home
• Buying a Home that fits your lifestyle
• Viewing and Comparing Homes

Once you’ve decided on the home you want, your REALTOR® should help you through the critical steps necessary to make it yours, including:

• Making your Purchase: Extending the Offer
• Protecting Your Home Investment – Pre and Post-Closing
• Home Financing Options
• Applying for a Loan
• Closing and Final Details
• Making Your House a Home

From their specialized market knowledge, to mortgage, financing and the closing of the transaction, your agent should provide assistance every step of the way.

Your REALTOR® should:

• Help you in determining how much you want to spend.
• Help define your housing priorities by discussing your specific needs, wants and desires.
• Recommend the right resources to help you reach your goals.
• Research and obtain information about houses and neighborhoods to help you make decisions.
• Help you prepare for mortgage qualification.
• Help you negotiate the best possible price.

Contact Infinity Realty today for the real estate company that will provide quality service you deserve.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

Your lender will need a complete picture of your financial situation to help determine how much home you can afford.  You and the loan officer will fill out the Uniform Residential Loan Application, a document that asks in-depth questions about you, your income, your assets and liabilities and your credit as well as a description of the property you wish to buy.  The process will go much smoother if you have everything with you when first meeting with the loan officer.

Determining your down payment
As part of the application process, you must state how much of a down payment you can make.  Obviously, the bigger the down payment, the smaller the mortgage.  As little as three percent down may be possible.  Qualified veterans may be able to obtain a loan with no down payment at all through the VA home loan program.  On loans with less than 20 percent down, you may be required to purchase private mortgage insurance (PMI) which protects lenders against losses.  The cost of PMI will be reflected in slightly higher monthly payments and, possibly, an additional fee at settlement.

What you will need for the application:

• Agreement or contract of sale
• Employment history
• Income information
• Source of down payment and closing costs
• Credit information
• Real estate owned
• Application fee

There are special situations regarding self-employment, rental income and the like which require additional information.  Your loan officer can tell you what else you will need. If you are in doubt, feel free to call and ask!

Application fees
Typically, lenders charge an application fee which covers the cost of a credit report, an appraisal of the property, and possibly, determining if the property is located on a flood zone.

Some lenders may not charge an application fee, but may increase the loan rate or other costs to cover these charges.  It’s important to have a clear understanding of the services covered by the fee and how they may be paid.

Application legal requirements
Within three days of your loan application, your lender is required to furnish you with a copy of Settlement Costs, a booklet prepared by the Department of Housing and Urban Development.  It describes the settlement process and the typical costs that buyers and sellers often must pay at settlement.  You may even want to ask for a copy before applying because the information is valuable.

You’ll also receive a Good Faith Estimate of settlement charges, based on your lender’s past experience in the area where the property is located.

Contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.