FAQs

Q?

What type of inspections do I need before I close on my home?

A.

Certain inspections may be required under your particular loan program. Based on the home and its location, there are various inspections you may want to consider even if they are not required, such as:

  • Termite inspection.
  • Water test (for well water).
  • Septic tank inspection.
  • Radon test.

Q?

What checks do I need to bring to the closing?

A.

You will need a cashier's check or certified check for your closing costs and fees. It is also a good idea to bring a few blank personal checks in case any last-minute costs arise.

Q?

Do I have to attend the closing in person?

A.

In most cases, you will need to attend the closing on a home or property purchase. However, in some cases you can grant power of attorney to a friend or family member to represent you or take the steps to complete a mail-away closing. Your mortgage representative can help evaluate your options.

Q?

How much down payment will I need?

A.

The minimum required down payment depends on the mortgage program you qualify for. In general, at least 3.5% of the sale price is required for an FHA or VA mortgage. If you put down less than 20% on a conventional loan, you may need private mortgage insurance (PMI).

Unlike primary homes, however, second homes do not qualify for FHA or VA mortgage financing. Buyers of second homes may be required to contribute a higher down payment for a second home – so be prepared if you are financing a vacation home or investment property.

You may be eligible to incorporate closing costs into your loan, added into either your interest rate or your loan amount. You will still need money for your down payment, but this will help reduce the amount of money you need to bring to the closing.

Q?

Do I need to sell my current home before I apply for a new mortgage loan?

A.

No, but depending on your income and debt levels, you may need to sell your home before you can close on the new one. Ask one of our experienced loan consultants for more information.

Q?

When should I start evaluating financing options, and how do I know what I can afford?

A.

You should look for a mortgage before you start looking for a new home. Once you examine financing options and get a pre-approval decision, you'll know how much money you can borrow and what level of home you can afford.

Before you begin looking for your home or property, real estate agents may ask you to get pre-approved. Having a pre-approval letter in-hand can give you an advantage over other buyers who may be interested in the same home – it shows the seller and real estate agent that you're financially ready to buy the home.