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1. How do I know how much house I can afford? Answer
2. How do I know which type of mortgage is best for me? Answer
3. What does my mortgage payment include? Answer
4. How much cash will I need to purchase a home? Answer
5. What documents will I need to apply for a mortgage?
Answer

Q : How do I know how much house I can afford?
A : Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. Give us a call, and we can help you determine exactly how much you can afford.
 
Q : How do I know which type of mortgage is best for me?
A : 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. Sunrise Family Credit Union can help you evaluate your choices and help you make the most appropriate decision.
 
Q : What does my mortgage payment include?
A : For most homeowners, the monthly mortgage payments include three separate parts:
  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
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    Q : How much cash will I need to purchase a home?
    A : 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
  • Other costs that you should consider are getting the home inspected by a licensed home inspector, home owners insurance premium, and property taxes.

     
    Q : What documents will I need to apply for a mortgage?
    A :
    • Your Social Security number
    • Drivers License
    • Pay stubs for the last two months
    • W-2 form for previous year
    • Bank statements for the past two months
    • One to two years of federal tax returns if self-employed
    • A signed contract of sale (if you've already chosen your new home)