Frequently Asked Questions (FAQs)

Generally, you can purchase a home with a value of two or three times your annual household income. However, the amount 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 and veterans to purchase a home with a higher value.

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 one of our loan officers.

Buying a home is a major purchase, one which comes with additional responsibilities. When determining whether you’re ready to buy, consider the following:

• Do you have a steady job?
• Is your current income reliable for the foreseeable future?
• Do you have a history of paying your bills regularly and on time?
• Have you saved money for a down payment?
• Can you afford a mortgage, taxes and utility bills?
• Are you prepared to tend to the landscaping, maintain appliances and perform home repairs?

The more frequently you answer “yes” to these questions, the more prepared you are to buy.

There is no simple formula to determine the type of mortgage that’s right for your specific needs. This choice depends on many factors, including your current financial state and how long you intend to keep your house.

Our Domain Mortgage team can work with you to evaluate your choices and help you make the most appropriate decision.

For most homeowners, the monthly mortgage payment includes three separate parts:

• Principal: Repayment on the amount borrowed
• Interest: Payment to the lender for the amount borrowed
• Taxes and insurance: Monthly payments typically are made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case you will pay the fees directly to your property insurance provider and the county tax assessor.

The amount of cash that is necessary depends on a number of items. You most likely 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

When a loan officer determines your interest rate, they’ll take the following factors into consideration:

• Type of loan
• Down payment amount
• Credit history
• Length of loan
• Mortgage points paid
• Fixed or variable rate financing