FAQ

The value of an older home versus a new home depends on various factors, including maintenance, renovations, and location. Older homes may have unique charm, but new homes often come with modern features. Evaluating individual preferences and priorities is crucial in determining the value of a home.

A broker is a professional who facilitates real estate transactions between buyers and sellers. They act as intermediaries, helping clients find suitable properties or buyers and negotiating deals. Brokers may work independently or for brokerage firms, and they play a crucial role in the real estate market.

Prequalification is an informal assessment of a borrower's financial situation, providing an estimate of how much they can borrow. Preapproval is a more detailed process involving a thorough examination of the borrower's credit, income, and other financial aspects. Preapproval carries more weight in the home-buying process.

Title insurance is a form of protection for property owners and lenders against financial loss due to defects in the title or ownership of a property. It ensures that the title is valid and free from any undisclosed liens or legal issues. Title insurance is typically a requirement in real estate transactions.

Yes, homeowners can often choose to pay their property taxes and homeowners insurance directly. However, some mortgage lenders may require an escrow account, where they collect and manage these payments on the homeowner's behalf. It's essential to check the terms of your mortgage agreement to understand your specific obligations.

To avoid private mortgage insurance (PMI), you typically need to make a down payment of at least 20% of the home's purchase price. Alternatively, some lenders offer loans without PMI but may have higher interest rates. Another option is to request PMI removal once you've built sufficient equity in your home through mortgage payments or property value appreciation.

Interest on a mortgage loan is typically calculated using the simple interest formula. The interest is based on the outstanding loan balance and the annual interest rate. Mortgage payments often include both principal and interest components, with early payments primarily going toward interest. Over time, a larger portion of the payment is applied to the loan's principal.