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How do I know how much house I can afford? Answer |
| 2. |
What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer |
| 3. |
How do I know which type of mortgage is best for me? Answer |
| 4. |
What does my mortgage payment include? Answer |
| 5. |
How much cash will I need to purchase a home? Answer |
| 6. |
What's the difference between pre-qualified and pre-approved? Answer |
| 7. |
When should I refinance? Answer |
| 8. |
What information will I need to provide if I want to get pre-approved for a loan? Answer |
| 9. |
I would like to have a home built. Do you have a loan for me? Answer |
| 10. |
I'm a first time homebuyer with little to no cash for a down payment or closing costs, can you find financing for me? Answer |
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How do I know how much house I can afford? |
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Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Feel fee to use our Loan Center Calculators to get an estimated amount. Give us a call, and we can help you determine exactly how much you can afford. |
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What is the difference between a fixed-rate loan and an adjustable-rate loan? |
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With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us. |
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How do I know which type of mortgage is best for me? |
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There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. American Mortgage of Montana, Inc. can help you evaluate your choices and help you make the most appropriate decision. |
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What does my mortgage payment include? |
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For most homeowners, the monthly mortgage payments include three separate parts:
Principal: Repayment on the amount borrowed
Interest: Payment to the lender for the amount borrowed
Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company. |
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How much cash will I need to purchase a home? |
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The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
Earnest Money: The deposit that is supplied when you make an offer on the house
Down Payment: A percentage of the cost of the home that is due at settlement
Closing Costs: Costs associated with processing paperwork to purchase or refinance a house |
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What's the difference between pre-qualified and pre-approved? |
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The pre-approval process is much more complete than pre-qualification. For pre-qualification the loan officer asks you a few income related questions, pulls credit, and provides you with a general pre-qualification letter up to a specified purchase price. Pre-approval is more applicable when you have a specific property in mind. It includes all the steps of a full approval, except for the appraisal and title search. Documentation verifying employment and income will be required as will verification of funds available for down payment, if applicable with the type of loan program you are seeking approval. Pre-approval cal put you in a better negotiating position, much like a cash buyer. |
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When should I refinance? |
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Usually people refinance to save money, either by obtaining a lower interest rate or by reducing the payment term of the loan. However, refinancing is also a way to convert an adjustable rate loan to a fixed rate loan, consolidate your debts, extract funds for home , or obtain cash to be used at your own discretion. Everyone's unique and deserves the special attention of one of our loan experts to determine whether a refinance is right for you. |
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What information will I need to provide if I want to get pre-approved for a loan? |
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You may be asked to provide American Mortgage of Montana with the following:
W-2 (2 years) & 1 month current pay stubs
Tax returns-not necessary for all loan types
Employer name(s) and address(s) for the past two years
Bank name(s), account number(s) and account balance(s)
Copy of driver's license
Self-Employed-last 2 years tax returns with all schedules
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I would like to have a home built. Do you have a loan for me? |
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At American Mortgage of Montana, Inc. we have several financing options for construction loans. Call one of our Loan Originators today to discuss your options. |
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I'm a first time homebuyer with little to no cash for a down payment or closing costs, can you find financing for me? |
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American Mortgage of Montana has several loan options to fit your needs. From 100% financing , where the homebuyer only contributes $500 of their own funds to put towards closing costs. To a 80/20 loan that requires no money down and the homebuyer also avoids paying mortgage insurance. Call or Email one of our Loan Originators for all of your financing questions. |
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