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| Home Financial Group, L.L.C. is a joint venture between Bob Parks Realty, L.L.C. and SunTrust Mortgage, Inc. This partnership arose from the partners shared vision of maintaining high professional standards while committing to serving the customer and community.
Bob Parks Realty is home to over 450 agents in 10 offices throughout Middle Tennessee. Founded in 1975, its commitment to both customer service and community service has allowed it to become the 2nd largest in residential real estate sales in Tennessee. Realtor Magazine ranked Bob Parks Realty 75th in the top 100 independent real estate companies in the country. Bob Parks Realty offers a full menu of residential real estate services including, relocation expertise, mortgage assistance, closing/title services, residential development, auction services, a commercial real estate division, property management, and much more. Home Financial Group, L.L.C. serves as the "The One-Stop-Shop" where you can work with your Realtor and a Loan Officer in one visit. This relationship expedites the loan process so that you can soon be in the comfort of your own home. Our dedicated team is here to serve you and answer any of your questions. We will work with you to help you understand the entire mortgage process. Windows of opportunities are awaiting you as a future homeowner, so let Home Financial Group help make the dream of owning a home come true for you! |
| 2. Why do I need to check my credit prior to purchasing a house? TOP
Even if you are sure you have excellent credit, it is wise to double-check at the outset. Straightening out any errors or disputed items now will avoid troublesome holdups down the road when you are waiting for mortgage approval. You may see disputed items, in addition to errors caused by a faulty social security number, a name similar to yours, or a court ordered judgment you paid off that has not been cleared from the public records. If such items appear, write a letter to the appropriate credit bureau. Credit bureaus are required to help you straighten things out in a reasonable time (usually 30 days). 3. How much do I need for a down payment? TOP Most lenders expect buyers to make a down payment of at least 5% of the value of the home. If you can afford to put more money toward a down payment, it will reduce the amount of your monthly mortgage payments. Some loan programs offer 3% down payments if you meet certain income standards. The Veterans Administration (VA) and the Rural Housing Service (RHS) offer no-down-payment loans for qualified borrowers. The lender will want to know how much money you plan to put down and the source of those funds. Sources you may draw upon include savings, stocks and bonds, pension funds, real estate holdings, life insurance policies, mutual funds, and employee savings plans. You may also use a gift of money from a family member that need not be repaid. If you do this, you will need to present a letter to your lender that states the amount of the gift that is signed by the giver. You are also now allowed to withdraw up to $10,000 from both traditional and Roth Individual Retirement Accounts (IRAs) with no early withdrawal penalty, if used toward buying your first home. Under some mortgage programs, such as the Fannie Mae Community Home Buyers Programwith the 3/2 Optionpart of your down payment may come from a grant from a nonprofit housing provider in your community. Content Provider: Fannie Mae |
| 4. How is pre-qualification different from pre-approval? TOP
The prequalification process includes analyzing your income, assets and present debt to estimate how much house you can afford. A pre-approval means that you have in hand a lender's written commitment to put together a loan for you (subject to verification of income and employment). Pre-approval makes you a stronger buyer, welcomed by sellers. With most other purchasers, sellers must tie the house up on a contract while waiting to see if the would-be buyer can really obtain financing. 5. What is the difference between conforming and nonconforming loans? TOP The term "conforming," as opposed to "nonconforming," is sometimes used to explain loans that offer terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. These are the two private, congressionally chartered companies that buy mortgage loans from lenders, thereby ensuring that mortgage funds are available at all times in all locations around the country. One of the important differences between a loan that conforms to Fannie Mae/Freddie Mac guidelines and one that does not is its loan limit. Fannie Mae and Freddie Mac will purchase loans only up to a certain loan limit. If your loan amount will be for more than the conforming loan limit, the interest rate on your mortgage may be higher or you may have slightly different underwriting requirements, particularly in regard to your required down payment amount. Check with your lender about this if you are taking out a large loan amount. TIP: Nonconforming loans are sometimes called "jumbo loans." Content Provider: Fannie Mae |
| 6. Should I choose a fixed or adjustable-interest rate mortgage? TOP
You can choose a mortgage with an interest rate that is fixed for the entire term of the loan or one that changes throughout. A fixed-rate loan gives you the security of knowing that your interest rate will never change during the term of the loan. An adjustable-rate mortgage (called an ARM) has an interest rate that will vary during the life of the loan, with the possibility of both increases and decreases to the interest rate and consequently to your mortgage payments. Content Provider: Fannie Mae 7. What are points? TOP In the special vocabulary of mortgage lending, "points" are a type of fee that lenders charge (the full term to describe this fee is "discount points".) Simply put, a point is a unit of measure that means 1% of the loan amount. So, if you take out a $100,000 loan, one point equals $1,000. Discount points represent additional money you can pay at closing to the lender to get a lower interest rate on your loan. Usually, for each point on a 30-year loan, your interest rate is reduced by about 1/8th (or .125) of a percentage point. TIP: Usually, the longer you plan to stay in your home, the more sense it makes to pay discount points. Content Provider: Fannie Mae 8. What is APR (Annual Percentage Rate)? TOP Annual Percentage Rate (APR) factors interest plus certain closing costs, any points and other finance charges over the term of the loan. The APR must be disclosed to you according to federal Truth-in-Lending laws within three business days of when you apply for a loan, or prior to or at closing for a refinance. Content Provider: Fannie Mae |
| 9. What are closing costs? TOP
On the day you actually buy your new home, in addition to your down payment, the prepaid property tax and homeowners insurance premiums, you will need cash for various fees associated with the purchase. These expenses are known as closing costs and are paid by both buyers and sellers. Some closing costs you pay up-front when you apply for a mortgage loan. Those include money for a credit check on all applicants and an appraisal on the property. Keep in mind that even if you do not eventually receive the loan, that money is not refundable. Other closing costs are possible and should be considered when evaluating your financial situation. These may include, but not limited to:10. What is PMI (Private Mortgage Insurance)? TOP If you put less than 20% down on most loans, you will be asked to protect the lender by carrying private mortgage insurance (PMI). Carrying PMI ensures that the debt is repaid if you default on the loan. This charge adds approximately an extra half a percent onto the loan. FHA mortgages, in return for their low-down-payment requirements, also charge for mortgage insurance premiums (MIP). |
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Equal Housing Lender
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