Get Pre-Approved For Your Home Loan
There’s No Place Like Home…
Especially When It’s a Brand-New Elliott Home with $4,000 in Closing Costs!
While we have a convenient mortgage calculator on our website to help you get an idea of the monthly investment for your dream home. This is for an estimate only. A qualified lender provides the exact amount based on multiple criteria, including your credit score.
Keeping you “In the Know” – Mortgage Terms Defined
- Adjustable-Rate Mortgage (ARM) – A variable rate loan that fluctuates depending on market rates. When you use an ARM, you get a short period, up to ten years, of fixed interest.
- Annual Percentage Rate (APR) – The annual interest rate on your loan plus any additional lender fees. You may see two interest rates when shopping for a loan. The larger is always your APR because it includes fees.
- Appraisal – A rough estimate of how much your home is worth. Mortgage lenders require an appraisal before signing a home loan.
- Closing Costs – Settlement costs and fees you pay your lender in exchange for finalizing your loan. Typical closing costs include appraisal, loan origination, and pest inspection fees.
- Closing Disclosure – A document that includes your interest rate, loan principal and closing costs you must pay.
- Debt-To-Income (DTI) Ratio – Equal to your total fixed, recurring monthly debts divided by your total monthly gross household income. Mortgage lenders look at your DTI to make sure that you have enough money coming in to make your payments.
- Deed – The physical documentation you receive to prove you own your home.
- Discount Points – An optional closing cost you can pay to “buy down” your interest rate. One discount point equals 1% of your loan amount. The more discount points you buy, the lower your interest rate. You will need to cover these points in cash at closing.
- Down Payment – The first payment you make on your mortgage. You’ll usually see your down payment as a percentage of your loan value. Though many believe a 20% down payment is needed to buy a home, you can do so with as little as 3% down. Some government-backed loans may even allow you to buy a home with no down payment.
- Escrow – An amount that your lender holds for property taxes or homeowner’s insurance. Escrow allows you to split taxes and insurance over a year rather than paying all at once.
- Fixed-Rate Mortgage – Has the same interest rate throughout the entire term of the loan. Homeowners who choose a fixed-rate mortgage often believe that rates will rise throughout their loan and want to be locked in at their current rate.
- Pre-Approval – A document that states how much you can afford to borrow. Your lender will ask about your credit score, income, assets and other financial information to determine how much you qualify for in a home. This can give you a budget to use when you compare homes.
- Principal – The principal balance is the amount you take out on a loan. This balance shrinks as you make your loan payments over time.
- Private mortgage insurance (PMI) – A type of insurance that protects your lender if you default on your loan. Lenders usually require PMI if you have less than a 20% down payment. You can remove PMI from your loan when you reach 20% equity in your property.
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