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Houston Mortgage First-Time Homebuyer - Frequently Asked Questions (FAQ) - Part 6

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					                                    Call Today: (800) 704-5432 or (281) 305-9375
                                    Click Here to Apply For Your Houston Mortgage

                                                                                            H O U S T O N F H A & U S D A M O RT G A G E C O N V E N T I O N A L M O RT G A G E
                                    W W W. H O U S TO N M O R T G A G E T E X A S . C O M   M O RT G A G E H O U S T O N VA M O RT G A G E 1 S T- T I M E H O M E B U Y E R S




Houston Mortgage First-Time Homebuyer: Frequently Asked Questions (FAQ) Series


Part 6: Finding the Right Mortgage Loan

After gaining an understanding of the basics of
mortgage loans, it is time to learn more about
the fine details associated with these loans.
To help you gain a better understanding, here
are the answers to some of the most Frequently
Asked Questions (FAQs) about finding the
right mortgage loan.


How can I choose the best mortgage
loan program for me?

You will need to consider your personal situation
when trying to determine which loan program is
best for you. Some questions you should ask yourself in order to narrow down your options include:

•	     Do	you	expect	your	financial	situation	to	change	within	the	next	few	years?

•	     Do	you	plan	to	live	in	the	home	for	the	next	several	years?

•	     Are	you	comfortable	with	your	mortgage	payment	amount	changing	over	time?

•	     Do	you	want	to	have	your	mortgage	debt	paid	off	when	it	is	time	for	children	to	go	to	college
	      or	when	you	are	ready	to	retire?

By	having	clear	answers	to	these	questions,	you	will	be	better	prepared	to	further	explore	your	options	with	
your lender in order to select the program that is right for you.


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                                                                                                                                                      PAGE
                                     Call Today: (800) 704-5432 or (281) 305-9375
                                     Click Here to Apply For Your Houston Mortgage

                                                                                             H O U S T O N F H A & U S D A M O RT G A G E C O N V E N T I O N A L M O RT G A G E
                                     W W W. H O U S TO N M O R T G A G E T E X A S . C O M   M O RT G A G E H O U S T O N VA M O RT G A G E 1 S T- T I M E H O M E B U Y E R S




Houston Mortgage First-Time Homebuyer: Frequently Asked Questions (FAQ) Series


How can I compare loan terms between lenders?

When comparing loan terms between lenders, you should create a checklist that contains all of the following
information:

•	     Type	of	mortgage

•	     Minimum	down	payment	required

•	     Interest	rate	and	points

•	     Closing	costs

•	     Loan	processing	time

•	     Whether	or	not	prepayments	are	allowed

Be	careful	if	you	are	contacting	more	than	one	lender	on	different	days;	interest	rate	quotes	will	vary	
because	they	can	fluctuate	on	a	daily	basis.	Ideally,	choose	a	lender	who	is	highly	qualified	and	offering	a	
great	rate	with	a	float	down	option.	A	float	down	option	can	give	you	the	ability	to	lower	your	interest	rate	
one time if rates go down after you lock in your rate.


Are there fees associated with the loan origination process?

Yes, there are costs associated with closing your mortgage loan, such as appraisal and processing fees.
However,	there	is	no	cost	to	apply	for	a	loan	with	our	mortgage	team.	Our	consultation	is	always	free.	Call	us	
at	(800)	704-5432	or	(281)	305-9375	or	visit	our	website	at	www.HoustonMortgageTexas.com.



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                                                                                                                                                       PAGE
                                     Call Today: (800) 704-5432 or (281) 305-9375
                                     Click Here to Apply For Your Houston Mortgage

                                                                                             H O U S T O N F H A & U S D A M O RT G A G E C O N V E N T I O N A L M O RT G A G E
                                     W W W. H O U S TO N M O R T G A G E T E X A S . C O M   M O RT G A G E H O U S T O N VA M O RT G A G E 1 S T- T I M E H O M E B U Y E R S




Houston Mortgage First-Time Homebuyer: Frequently Asked Questions (FAQ) Series


Are there fees associated with the loan origination process?

Yes. The Real Estate Settlement Procedures Act, or RESPA, requires lenders to disclose information to
potential	customers	throughout	the	entire	mortgage	process.	Information	that	borrowers	are	mandated	to	
share includes:

•	     Business	relationships	between	closing	service	providers	and	anyone	else	involved	with	the	transaction

•	     Closing	costs

•	     Escrow	account	practices

•	     Lender	servicing	practices

To	learn	more	about	RESPA	or	to	receive	a	local	counseling	referral,	visit	the	RESPA webpage or call
1-800-569-4287.

You	are	also	protected	from	discrimination	based	on	race,	color,	nationality,	religion,	sex,	familial	status	
or	disability.	If	you	feel	a	lender	has	discriminated	against	you,	contact	HUD’s	Office	of	Fair	Housing	at	
1-800-669-9777. The hearing impaired may call 1-800-927-9275.


What is a good faith estimate?

A	good	faith	estimate	is	the	lender’s	estimate	of	all	of	the	fees	that	will	need	to	be	paid	before	closing,	the	
closing	costs	associated	with	your	purchase,	and	the	escrow	costs	involved	with	the	purchase	of	your	home.	




                                                                                                                                                     {3}
                                                                                                                                                       PAGE
                                    Call Today: (800) 704-5432 or (281) 305-9375
                                    Click Here to Apply For Your Houston Mortgage

                                                                                            H O U S T O N F H A & U S D A M O RT G A G E C O N V E N T I O N A L M O RT G A G E
                                    W W W. H O U S TO N M O R T G A G E T E X A S . C O M   M O RT G A G E H O U S T O N VA M O RT G A G E 1 S T- T I M E H O M E B U Y E R S




Houston Mortgage First-Time Homebuyer: Frequently Asked Questions (FAQ) Series

What are my responsibilities during the lending process?

As	the	buyer,	you	have	to	take	on	many	responsibilities	to	ensure	you	do	not	encounter	financial	troubles,	
become	the	victim	of	fraud	or	otherwise	get	into	legal	trouble.	Some	of	these	responsibilities	include:

•	     Read	and	understand	everything	before	you	sign	it

•	     Never	sign	blank	documents

•	     Do	not	exaggerate	your	income,	assets	or	length	of	employment

•	     Accurately	report	all	of	your	debts

•	     Be	honest	about	your	credit	problems,	both	past	and	present

•	     Do	not	change	your	tax	returns	or	provide	fake	supporting	documents

•	     Do	not	list	fake	co-borrowers	on	your	loan	application

•	     Do	not	purchase	a	property	for	someone	else


How much do I need for a down payment?

VA and USDA mortgage loans require 0% down. FHA	loans	require	only	3.5%	down.	If	your	down	pay-
ment is less than 20 percent, your lender will likely require you to carry a mortgage insurance policy.
Furthermore,	keep	in	mind	that	you	will	have	more	equity	in	the	home	and	will	have	to	borrow	less	if	you	
provide	a	larger	down	payment.	When	considering	how	much	you	pay	toward	your	down	payment,	make	
sure	you	set	aside	enough	money	to	also	cover	the	costs	associated	with	closing,	moving	and	completing	
any	repairs	or	renovations	that	may	be	necessary.


                                                                                                                                                    {4}
                                                                                                                                                      PAGE
                                    Call Today: (800) 704-5432 or (281) 305-9375
                                    Click Here to Apply For Your Houston Mortgage

                                                                                            H O U S T O N F H A & U S D A M O RT G A G E C O N V E N T I O N A L M O RT G A G E
                                    W W W. H O U S TO N M O R T G A G E T E X A S . C O M   M O RT G A G E H O U S T O N VA M O RT G A G E 1 S T- T I M E H O M E B U Y E R S




Houston Mortgage First-Time Homebuyer: Frequently Asked Questions (FAQ) Series

How do interest rates affect my mortgage loan?

Your interest rate	will	have	a	direct	effect	on	how	much	you	can	borrow	as	well	as	the	amount	you	have	to	
pay	each	month	toward	repayment	of	the	loan.	In	short,	the	lower	your	interest	rate,	the	more	you	will	be	
able to borrow without increasing your monthly payment. You can help bring down your interest rate by
purchasing	discount	points,	with	each	point	being	equivalent	to	1	percent	of	the	total	loan	amount.	These	
points,	which	are	tax	deductible,	can	be	a	smart	way	to	reduce	your	monthly	payment	if	you	plan	to	stay	in	
the home for quite some time.




                      Call	today:	(800)	704-5432	or	(281)	305-9375	or	visit	us	online:	
                               http://www.HoustonMortgageTexas.com




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DOCUMENT INFO
Description: Houston Mortgage First-Time Homebuyer - Frequently Asked Questions (FAQ) - Part 6: Finding the Right Mortgage Loan. After understanding the basics of a mortgage loan, it is important to know how to choose the right mortgage loan program for you. This section explains common fees associated with loan programs good faith estimated and buyer responsibilities during the mortgage process. Here are some of the most Frequently Asked Questions (FAQs) as they relate to Houston mortgages.