Bob Dohn Schaumburg Real Estate

 

 Buyer FAQs

 

What can I afford to buy?

How much down payment will I need?

Who can tell me what my property taxes will be?

What is title insurance and why is it required?

How much title insurance do I need?

How much homeowner's insurance does a lender require?

How do I know if I need flood insurance?

How are my property tax bills paid?

What type of inspections do I need before I close on my home?
Homebuyer Tax Credit Q & A

 

What can I afford to buy?

http://images.mortgagequestions.com/img/brand95/utilities/dotclear.gifEach buyer is unique — and we'll help you find out just what you can afford. Your income and your debts will typically play the biggest roles in determining your price range. It's simple to make an estimate, just run the numbers for yourself using our

How much down payment will I need?

http://images.mortgagequestions.com/img/brand95/utilities/dotclear.gifThe minimum down payment required depends on the mortgage program you select. Usually at least 3% is required. If you put down less than 20% on your monthly payment may be subject to Private Mortgage Insurance (PMI).

If you are concerned about having enough money to purchase a home you may want to consider our options for rolling your closing costs into either your interest rate or your loan amount. You will still need to come up with money for your down payment but this will help reduce the amount of additional money that you will need to bring to close.

Who can tell me what my property taxes will be?

http://images.mortgagequestions.com/img/brand95/utilities/dotclear.gifThe seller and/or your Realtor should provide you with the current taxes for the property. Property taxes are reassessed from time to time, so this amount may change. If you would like to confirm what your taxes would be, you can contact the county Recording Office.

What is title insurance and why is it required?

Title insurance protects the lender or you against losses from disputes over the title of a property. It ensures against the possibility that there may be an unknown lien or any discrepancies in ownership. You may want to consider purchasing a separate buyer's policy to protect your interests.

How much title insurance do I need?

The amount of title insurance needed is based on the value of your home and the amount of your mortgage. Lenders are covered for the full value of the mortgage. This policy is required and will vary from state to state. There is a one-time fee for the policy that you pay at closing. In addition, you can obtain a separate owner's insurance policy to cover the full value of your home. However, this additional policy is not required.

How much homeowner's insurance does a lender require?

Your homeowner's insurance policy must cover the cost to rebuild the home. The insured amount may be higher or lower than the actual purchase price as long as it meets the program requirements. The insurance company you choose can give you an actual quote based on specific information about the property.

How do I know if I need flood insurance?

We will perform a flood hazard determination for your property. If your home is located in a Special Flood Hazard Area, federal law requires you to purchase flood insurance. Most standard homeowner's insurance policies do not cover loss due to flood. If you choose, you can obtain flood insurance coverage even if you are not required to do so by the lender.

How are my property tax bills paid?

It depends on your loan program and state requirements. Generally, if your monthly mortgage payment includes money for property taxes, these funds are held in escrow by the lender and the lender pays your property taxes as they become due. Generally, if your payment does not include property taxes, you are responsible for paying them by the due date mandated by your state.

What type of inspections do I need before I close on my home?

Certain inspections may be required under your particular loan program. However, depending on the home and the location, there are a variety of inspections you may want to consider before you close on your new home even if they are not required under your program, such as:

  • Home Inspection
  • Termite inspection
  • Well water test
  • Septic inspection
  • Radon test
  • Mold test
  • Lead-based paint test
Coldwell Banker Schaumburg Coldwell Banker Residential Brokerage
20 South Roselle Road, Schaumburg, IL 60193

 

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