Real Estate FAQs

Choosing and buying a new home can be an involved and often confusing process. But we're here to make this a simple process for you. If you don't find an answer to your question below, simply give us a call at no obligation, for helpful information. If you need a place to call without all the hassle, RE/MAX Discovery Crew is here for you.
    What if I've had credit problems?
    Don't let credit problems stop you from applying. In fact, you may be in the majority of consumers. We all have debt. The question is: is it explainable, correctable, or even perhaps is it good debt?
    Will my real estate agent order an inspection for me when I buy a house?
    Typically, you and your agent work together. It is up to you to ensure a home inspection is performed though.
    How do I know how much house I can afford?
    Generally speaking, you can purchase a home with a value of 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
    What is the difference between a fixed-rate loan and an adjustable-rate loan?
    With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest may change, in relation to an index. Monthly payments with a fixed-rate are stable, while ARM loans may change.
    What will a lender look at when I apply for a loan?
    There are many things included such as:

    Your income

    Your current debt load

    Your W2's for the past 2 years

    The Loan to Value (LTV) ratio, which is the amount of the loan you want compared to what you make.
    How is an index and margin used in an ARM?
    An index is an economic indicator that lenders use to set the interest rate for an ARM. 3 commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th Dist. Federal Home Loan Bank (COFI), and London InterBank Offering Rate (LIBOR).

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