I want to buy a home, but not sure where to start?

Buying a home is a great investment into your financial future. Before you start shopping, you should always begin by determining your budget and what it takes to apply and qualify for a home loan. Start by talking to a mortgage professional today! info@basecampmortgagenw.com

What is the difference between being pre-qualified and pre-approved?

Most large mortgage companies and banking institutions will pre-qualify borrowers with a soft credit pull and simple questionnaire about your estimated income and debts. Unfortunately, being pre-qualified is not a guarantee that you will qualify for a home loan. Being PRE-APPROVED by a certified Mortgage Professional means your financial situation and income has been thoroughly reviewed, vetted, and approved for obtaining a home loan. A pre-approval from Basecamp Mortgage, NW makes you a VERY qualified buyer as you start making offers to buy a home.

Do I need to have a down payment?

Yes and no. Typically, to qualify for a conventional home loan, a minimum of 3% down is required for first-time buyers and 5% is required for seasoned buyers. However, depending on the loan program being used, some buyers may qualify for down payment assistance or even a down payment grant! It’s always best to discuss available loan products, options, and their requirements with a qualify mortgage professional. Info@basecampmortgagenw.com

What are closing costs?

All home purchases and refinance transactions require a licensed Title Company to ensure the proper and legal transfer of property. Thus, closing costs include fees paid to the Title Company and any taxes or escrow payments due at Closing (Closing is the official day that ownership is transferred). Closing costs also include possible appraisal fees, origination fees, and discount points. While some Mortgage Brokerages add fees to closing costs, Basecamp Mortgage does not add additional fees.

What are escrow accounts?

Escrow accounts are savings accounts managed by your mortgage servicer that are used to pay your annual homeowner’s insurance premium and property taxes on your behalf. To keep the account full, they collect funds each month as part of your total mortgage payment. When a buyer puts 20% or more down on a home purchase, they have the option of opting out of using an escrow account. Keep in mind, those not escrowing their taxes and insurance must remember to save for and to pay their taxes and insurance when they are due.

What is a PMI?

“PMI”, or Private Mortgage Insurance, is required by most mortgage lenders when a buyer puts lets than 20% down on a purchase. It’s a monthly cost to the borrower, and the amount is determined by the borrower’s credit profile, their initial down payment amount, and debt-to-income ratio. Once the home value reaches greater than or equal to 80% of the loan balance, the PMI fee is removed! At Basecamp Mortgage, NW we pride ourselves on working with lenders with some of the lowest PMI’s in the industry.

What factors influence the interest rate?

The interest rate a borrower qualifies for is greatly dependent on, but not limited to:

• Applicant’s credit score and profile.

• Applicants debt-to-income ratio (calculated by taking your monthly minimum payments/your gross monthly income).

• Size of the down payment. Typically, the larger the down payment, the better the rate.