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The amount you can afford depends on several factors, including your income, debt, credit score, and desired down payment. Many online mortgage calculators can provide a rough estimate, but it's best to consult with a loan officer for a personalized assessment.

 A fixed-rate mortgage has an interest rate that remains the same for the entire loan term, while an ARM's interest rate can adjust periodically based on a specific index. Fixed-rate mortgages offer stability, while ARMs may offer lower initial rates.

The required down payment varies depending on the type of loan. Conventional loans typically require a minimum of 3%, while FHA loans need at least 3.5%. However, there are options with lower down payments, such as VA and USDA loans, as well as various down payment assistance programs. 

Private Mortgage Insurance (PMI) is typically required for conventional loans with down payments less than 20%. It protects the lender in case of default.

Closing costs are fees paid at the closing of a real estate transaction. They can include loan origination fees, appraisal costs, title insurance, property taxes, and more. The total amount varies depending on several factors.

 Lenders often set up an escrow account also known as an impound account to hold the tax and insurance portion of your mortgage payment. At closing, the Lender will collect sufficient funds to establish the necessary monies in this account. The reserves, plus monthly deposits are held until they need to be used by the Lender to pay the taxes and insurance. 

 An appraisal is a written analysis of the estimated value of your property. A qualified appraiser who has knowledge, experience and insight to the marketplace prepares the document. This ensures that you’re paying fair market value for your home. An appraisal is required in order to close on your new home or property. 

Funds needed for closing is dependent upon your particular situation. Generally, you only need to bring funds to the closing on a purchase transaction. If you are refinancing your current home, you may include the closing costs in your loan amount. Because the required funds to close varies on every loan, we provide you with a Good Faith Estimate at application and a few days prior to closing, your attorney will provide the final numbers. Money owed includes the following:

• Closing Fees (title fees, appraisal, recording, survey, flood cert etc.)
• Downpayment
• Escrow Account (Taxes, Insurance and PMI if applicable)

Title insurance protects against any title dispute that may arise over any particular property like your home. Before your closing, a title company researches your property’s title to ensure it was legally passed from buyer to seller, each time it was bought or sold. Title insurance further protects the lender against any illegal or fraudulent title transfers that may have occurred during an investigation. Title insurance is required to close on your home.