Frequently Asked Questions

Most of us only buy one or two new homes during our lives. However, it’s one of the biggest decisions we’ll ever make. Mortgage Plus Corp has assembled a list of the most commonly asked questions in the business, to help YOU make the right decisions.

Q: Where do we begin our new home search?

A: Call your Realtor or Mortgage Lender to get “pre-approved” for your financing BEFORE you look for a new home. Learn about your financing options and make sure you can obtain a mortgage. Your Lender and Realtor will work together to help you negotiate your best deal, and avoid any last-minute surprises.

Q: What is a “Pre-Approval Letter”?

A:This is the letter, which your Lender provides to your Realtor, to show that you are qualified to obtain a mortgage. It will tell them how much you can afford, and what type of loan you will need. They will usually give a copy to the sellers of your new home at the time you make an offer. A “Pre-Approval Letter” tells the seller that you are a bona-fide buyer, and can often be the key to landing a deal.

Q: Do I need a Real Estate Agent?

A:A wise man once said, “He who represents himself in court, has a fool for a client.” The same is true in Real Estate. You are not required to have an agent, but they can help you avoid making costly mistakes. Realtors are licensed, and must stay up-to-date on the latest laws and procedures to assist their clients, and protect their interests. Many people are not aware that the agent who advertises a home for sale actually works for the SELLER. A “Buyer’s Agent” is one who has a special agreement with the buyer, and who is obligated to protect his or her interests.

Q: How does my Realtor get paid?

A: Your agent works on commission. The SELLER pays him or her, and their fee is deducted from the amount the seller receives from the sale of the home. In most cases, even if you have a “Buyer’s Agent”, the commission is still paid by the seller.

Q: I think my credit is too bad to buy a home. How do I know for sure?

A: Many buyers are very surprised to find that their credit is NOT as bad as they thought! Before you assume that you cannot buy a home, call your Lender, and have them look at your credit report. There are many mortgage loan programs available to buyers with “Less than Perfect” credit.

Q: How much can I afford?

A: Your Lender can quickly determine this for you. They will examine your income and monthly expenses, and tell you how much house you can afford. They can also tell you what the estimated monthly payments will be, as well as how much you will need for Closing Costs.

Q: What are “Closing Costs”?

A: “Closing Costs” are the money you will need to pay at your loan settlement, when you take possession of your new home. Also called “Settlement Charges”, they cover the costs of such things as your Credit Report, Home Appraisal, Title Work, Loan Fees and any Transfer Taxes or Documents Stamps required. They also cover your Down-Payment and Escrows needed to secure your loan. Many buyers negotiate a deal, which requires the sellers to assist with some of these costs. Your Lender can also show you ways to reduce these costs.

Q: What is an “Appraisal”?

A: Your lender requires an Appraisal, to determine the value of your new home. It is done by comparing your potential new home to similar homes in the area, which have been sold recently. Some loan programs require the appraisal to be even more comprehensive, going so far as to require the seller to make certain repairs before you take possession. An appraisal is the best way to be sure you are getting your money’s worth.

Q: What is a “Home Inspection”, and do I really need one?

A:The Home Inspection is different from the Appraisal. Although it is optional, it is usually a good idea. It is done by a Home Inspector of YOUR choosing, who will examine your potential new home very closely, to give you an opinion of its physical condition. A home Inspector will test all major mechanical and plumbing systems, as well as the structure of the home. The inspection should be done soon after the contract is accepted, so that any problems can be addressed immediately. Ask your Realtor about a Home Owner’s Warranty to protect your investment.