Are new homes as well built as older homes?
According to the National Association of Home Builders, yes. Because of better windows, more efficient heating and cooling equipment, better control of air infiltration, and greater use of insulation, new homes consume half as much energy as homes built prior to 1980. Old homes tend to be drafty and less comfortable. Also, frost and condensation are more likely to appear on windows of older homes, drip down, and cause deterioration of wood trim and walls.

Are new homes safer than older homes?
According to the National Association of Home Builder, yes. Occupants of new homes are much less likely to die from fire than occupants of older homes. New homes have hard-wired smoke detectors that operate even when the power goes out. Space heaters and wood stoves, the second leading cause of fire deaths, are not needed in new homes because of more efficient central heating systems and better insulation.

How much money will I need at closing?
Your closing costs will depend upon the sale price, the amount of your down payment and the various fees connected with the purchase of your home. Closing costs and escrow items include mortgage insurance, prepaid taxes, attorney’s fees, title insurance, etc.

How much of a difference does a large down payment make?
The amount of down payment will affect your monthly payment and the type of loan product that will best meet your needs. Please try the Loan Calculator, with varying down payments, to determine the monthly payment that works best for your financial situation.

Should I wait to buy a home if I currently have debt?
No. There are four major factors when considering an application: your employment and income, your assets, your credit record, and the value of the home you wish to purchase. All these factors are considered when making a credit decision. Please don't hesitate to apply.

Do I have a choice of points or no points?
Yes, you do have a choice. The primary idea of points is to pay a fee at closing in order to lower your interest rate. Depending upon how long you keep your loan, you may save substantially more money over the life of the loan. Your mortgage professional can help you decide whether you should chose to pay points.

What are the pros and cons of getting an adjustable rate mortgage?
When interest rates are high, many borrowers choose an adjustable rate mortgage. This option will keep your monthly payment lower as you start out in your new home. When interest rates are low, choosing a fixed rate mortgage will lock in that low rate over the life of the loan. Other pros and cons:

• Adjustable rate mortgages may be assumable, conventional fixed rate mortgages usually are not.
• If you plan to sell in the near future, an adjustable rate mortgage may be best because you pay a lower rate at the beginning of an adjustable loan. Therefore, you’ll incur less interest expense for the short time that you own your home.
• This decision should be thought out carefully. If interest rates rise, you may have higher monthly payments for a significant period with an adjustable loan.

Maplewood Place recommends you talk to a mortgage professional before making any decisions.

What mortgage expenses are associated with buying a home?
Your loan counselor will provide you with a Good Faith Estimate (GFE) after you have applied for a loan. This disclosure outlines all costs associated with the loan closing. Many lenders charge an origination fee and a processing fee. Other fees associated with a loan closing may include, but are not limited to, your attorney’s fees, filing fees, mortgage taxes, title search and title insurance. You may also be asked to pay real estate taxes and/or establish escrow accounts for real estate taxes and homeowner’s insurance.