Frequently Answered Questions

Continued...

Q. If we pay our new mortgage on time and clean up our credit record, how long will it be before we can refinance this loan?

A. Normally it is two years or less. Some homeowners may be able to refinance in less than a year if they are dedicated to paying off accounts or negotiating with the creditor for a lower pay off balance.

Q. You mean I may be able to negotiate with some of the creditors for a lower payoff or lower interest rate, if I'm trying to restore my credit?

A. Each case is totally different, but creditors may be willing to settle your account for less money and interest, especially if they realize that you already own your home. Part of the power that a creditor uses to block you from buying a home is a negative note on your record. We encourage you to start restoring your credit record immediately. In most cases it is better to start this pro process after you have moved into your home.

Q. The price of the home we were buying is now more expensive than we were first told. Why?

A. There are several factors. One, you may have chosen too many upgrades in your home. Two, the builder has to net the same amount of money for the home. Your builder is offering this program so you can own a home. When the builder has to pay for discount points or take a second lien, then the cost of selling the home has been increased for the builder. In many cases the builder is having to help finance this loan by taking a five percent second lien. The builder has to wait for you to pay this second lien on a monthly installment. This costs the builder money, so the price of the home has to increase. The builder may have to pay some other points or cost associated with this program. That is why the price of the home has increased.

Q. We have enough money for the down payment, but we don't have money saved for the closing cost. What options do we have and can we still buy a home?

A. Yes. One, you can obtain a gift form you parents or rich uncle. Two, you can roll your closing cost into the sales price of the home, which means you will need the 5% down payment and some limited closing cost at the closing table. The lender can give you a close estimate of the total funds needed to close this loan. Many of our buyers use this avenue to close their loan,

Q. We have been renting for several years. The landlord sold this property recently. How do we verify that we have paid our rent? Can we get a letter signed by the landlord saying we are good tenants?

A.No. This program has two up front requirements, one, you must pay the five percent down payment and the other is that you must produce canceled rent checks for the past 24 months. The rent requirement may be waved only in rare occasions.

Q. Our parents may help us buy a home, can we use a gift letter to verify this down payment?

A. The funds must be verified in your bank account for 30-60 days before you purchase home. You need to talk to our lender to be sure you meet all of their requirements on the aging of this account.

Q. We are really excited about buying a home. Can't we just go out and find a home we like and then bring the price and floor plans to you?

A. Because this program is so unique, there a are only a handful of builders who are offering this special financing. Your first step is to call our office at 512-346-1962 and make an appointment. In this meeting we will give you the steps to follow so you can purchase your home.

Q. This sounds to good to be true and it really seems easy? What's the catch?

A. First of all, it is not that easy. There is a lot of hard work everyone has to put into this project to make sure you obtain the best loan an interest rate possible. You are very important to this process. You must be willing to listen and follow instructions. Owning a home is a privilege. People all over the world would give anything to have this right and opportunity. It is up to you to be ready to accept the terms and conditions to this loan.

Q. The last loan company promised us they could do the same thing you are telling us now, but they didn't. Why should we trust you?

A. The entire program is designed to close your loan. The lender is charging a credit application fee of less than $75.00 to start you on your way to home ownership. From this credit report, the lender will be able to tell you the interest rate and closing cost for you to be approved for the loan. This approval for you loan is subject to the other information, terms and conditions which the lender will give you at a formal loan application.

Q. We want to get started. Where do we go from here?

A. Call our office at 512-346-1692. We will ask you to make an appointment. Our office is at 4212 Lostridge Drive, Austin, TX 78759. At this meeting we will give you loan papers to fill out and a contact person who will help you complete your application. This meeting will enable you to understand the program in greater detail.

Q. How long will this loan process take?

A. A lot depends on you. Once you get all of your records to the lender, it usually is less than one week before you know exactly how much home you can afford to purchase and what interest rate you will be paying..

Q.What if the Builder doesn't have my house built and I have to wait until it is finished to close my loan.

A. All loans have a time limit on them an your lender will let you know what your close date has to be for this loan to be valid.

Q. We want to buy some new things for the house. Is that ok?

A. ABSOLUTELY NOT! DO NOT PURCHASE ANYTHING BEFORE YOU CLOSE YOUR LOAN. DON'T BUY A TV, WASHER/DRYER, NEW CAR, CLOTHES OR ANYTHING. THIS COULD STOP YOU FROM BEING ABLE TO CLOSE YOUR LOAN. Every purchase you make on credit will show up on your credit report. Even credit inquiries can lower your rating. New spending counts against you. It could cost you in terms of a higher interest rate or it could disqualify you from getting the loan.

Q. How much money will we need at the closing?

A. The lender will be able to giver you an estimate. It is important that you start saving your money now to insure that you have all the funds you need to close.