Frequently Asked Questions
Should I get pre-approved before I start searching for a home? - Yes. Realtors need to know that their client will be able to obtain a mortgage before they will hold a property on deposit. Sellers do not want to risk going through the process of selling their home and making plans to move unless they are sure a buyer is able to obtain financing. Lighthouse Funding Group provides its clients with a speedy lender pre-approval and at no cost. What is an escrow account? – Some lenders prefer people to pay annual taxes and property insurance as part of their mortgage payment. They will require money at the time of closing to put in an escrow account so that they may pay your taxes and insurance when they come due. Generally they will require three to five months of taxes and two to three months of homeowners insurance to be paid at the time of closing, in addition to paying a full one year of insurance. What other costs should I expect to pay? – In addition to setting up an escrow account with your lender and paying closing costs, you may be required to pay “per diem interest”. When you pay your monthly mortgage payment, you are paying for the previous month’s interest. If you were to close on a loan during the month of September, your first mortgage payment would be due on November 1st. That payment will cover all the interest that is due for October, but what about all the interest that accumulated from the day you closed in September until September 30th? That is your per diem interest. At the time of closing, you may be required to pay for any per diem interest. Is there any difference between purchasing a condo versus a single family home? – The major difference is that you may be required to pay a monthly condo fee. That fee usually covers all of the maintenance to the common areas of the development. This is sometimes referred to as a Homeowners Association Fee. What is a seller concession? – A seller concession will allow a person to have the seller of the property pay for all or part of the closing costs. When purchasing a home for the first home, a person may need extra money to make some cosmetic changes to the property, or they may need things like furniture to decorate the added space that they now have. Why choose Lighthouse Funding Group as my Mortgage Company? – We offer great loan programs for many different types of mortgage scenarios. We work closely with people to ensure that they receive a loan that fits their needs and provide them with a competitive interest rate. We want to develop a long term relationship with people and are always be happy to answer any questions that they have regarding the mortgage process.