Home Buying Basics
This is the money you save up to get started buying a house
What is a down payment?
This is the “price tag” for borrowing money, shown as a percentage
What is Interest?
Most Home loans in the U.S are paid off over this many years
What is 30 years?
This loan is the most common which requires at least 3% down for first time home buyers and 5% Down for others.
What is a Conventional Loan?
If you’re self-employed, lenders usually look at this document to see how much money you make
What are Tax Returns?
Before you go house shopping, you should do this so you know what you can afford
What is getting Pre-Approved?
This part of your monthly Payment goes toward what you actually owe?
What is principal?
This is what its called when you change your loan to get a lower rate
What is Refinancing?
This loan is backed by the government, is popular with first-time homebuyers, and only needs 3.5% down
What is an FHA Loan?
Instead of a paycheck, many self-employed people get one of these at the end of the year showing how much they earned.
What is a 1099 form?
This person helps you find homes for sale and negotiates the deal
What is a Real Estate Agent?
hmm hmm Gabe!
You pay this to protect your house from things like fire, storms, or theft
What is Homeowners Insurance- Or we can accept Ryan Aduddel or Jim Kritikos
This is the part of your home you actually “own” after you’ve been paying for a while
What is Equity?
This loan is for veterans and active-duty military, requires no down payment, and has no PMI
What is a VA Loan?
Lenders usually average this many years of income for self-employed borrowers
What is 2 years?
This is what you call the day you sign the papers and get the keys
What is closing?
This is what your credit score can help determine on your Mortgage loan
What is your interest rate?
When you are Paying every two weeks instead of once a month is doing this
What are bi-weekly payments to lower pay off loan sooner
This loan is for homes in rural or suburban areas, with 0% down payment if you qualify.
What is a USDA Loan?
If you write off too many expenses, this happens to your qualifying income
It becomes too low or not enough.
This is the term for the money you pay every month to live in your new house
What is a mortgage payment?
Making even one extra payment a year towards this on your mortgage can help you pay off your home sooner
What is a Pricipal payment?
This is what happens if you stop paying your mortgage for too long
What is Foreclosure?
This loan is used when the house price is higher than what a regular conventional loan limits allows which is $806,500
What is a Jumbo Loan?
Some special loan programs use just your bank statements instead of tax returns to qualify
What is a Bank Statement Loan?