Need some help understating different types of mortgages and loan stuff, help?
I need help understating that. Whats closing cost?
what are the different types of mortgages?
what is escrow?
any help would be appreciated.
thanks!
Tags: Different, Help, loan, Mortgages, Need, Some, stuff, Types, understating
Sounds like you need to speak one on one with a loan officer to guide you through the process. Those are a lot of questions that cannot easily be answered here.
HUD (Department of Housing and Urban Development) has a lot of great educational tools for homebuyers.
Here is a link to that page on their website:
http://portal.hud.gov/portal/page/portal/HUD/topics/buying_a_home
Closing costs include loan fees, prepaid interest, property taxes, service fees for the loan and title processor and a few other standardized fees.
Once starting the loan approval process you should have received a good faith estimate form (The HUD RESPA document) spelling out estimated closing costs.
All these fees usually add up to 1-3% of the purchase price of the home.
Escrow can be the time of the loan process when the title company handles all the documentation or it is also a term used for when the mortgage lender collects your property taxes in monthly increments which they then disburse to your county tax assessor on the due date.
There are many different types of mortgages, conventional, FHA (lower down payment), VA (for veterans), USDA, and so on.
Take the time to educate yourself before taking this big step of buying a home.
For many people this is the largest investment you will ever make; don’t go into it blind.
You can’t go wrong with Homebuying for Dummies. (despite the name, a great series)