How do I know how much house I can afford?

Generally speaking, you can purchase a home with a value of two or three times your annual household income.

What is the difference between a fixed-rate and ARM?

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.

How do I know which type of mortgage is best for me?

There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. American Property Mortgage can help you evaluate your choices and help you make the most appropriate decision.

How much cash will I need to purchase a home?

The amount of cash that is necessary depends on a number of items. Generally speaking, though, you 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

Can I speed up the approval process?

Yes, it may be possible to speed up the process. Consider these tips below:

• Prepare your paperwork ahead of time.
• Check your credit history and resolve any issues. Be able to explain any other questions about your credit that arise.
• Make sure you have all the documents you need before applying, including personal identification, income verification and tax returns, employment history, and insurance commitments.
• Respond promptly to any requests from the loan officer to eliminate unnecessary delays.

What are conforming and non-conforming loans?

Conforming loans meet specific national standards, most often referred to as Fannie Mae/Freddie Mac requirements. These loans follow uniform standards set for document specs, maximum loan amounts, interest rates, and debt-to-income ratios.

Non-conforming loans do not meet these standards due to either the borrower’s financial status or the property not falling within set guidelines. These are funded by private lenders and often come with higher interest rates.