1. How many homes should I view and how should I make the
final decision?
A. Viewing a number of homes and looking at "comps" can help you to get a feel for what your money can buy in the current market. When you find a home you really like, it’s a good idea to go back and look at it at a different time of day. This will give you greater insight into what it will be like living in the home full time. The final decision is very personal and can only be made when you are comfortable and confident in the details of the transaction.

2. How much will my principal be? How long will my mortgage last if I pay more?
A. These and other finance questions can be answered in the "Financing" section of the website. Take advantage of the tools and calculators to determine your needs in financing.

3. How can I check my credit rating prior to applying for a mortgage?
A. Your credit rating is based on a combined score generated from three credit bureaus who look at your credit history, amount of credit available, and recent inquiries to determine what’s called your FICO score. A smart way to go is to have your Live Oak Mutual representative check your rating for you and, if appropriate, suggest ways for you to improve your credit.

Equifax, www.equifax.com, (800) 685-1111
Experian, www.experian.com, (888) 397-3742
TransUnion, www.transunion.com, (800) 916-8800

4. Should I pay points for a lower interest rate?
A. Paying points for a lower interest rate is a trade off between paying money now versus paying money later. Buyers often choose to pay a one-time charge called mortgage “points” in exchange for a lower interest rate. Usually paid at closing, each “point” costs 1% of the mortgage amount, or $2,000 on a $200,000 loan. The lower rate reduces the monthly mortgage payment, and points paid in conjunction with the purchase of a home are generally tax-deductible in the year they’re paid (see tax advisor). Monthly savings will often exceed what was paid in points in just a few years’ time.

5. What is title insurance and why do I need it?
A. Basically, title insurance assures that you have clear title to the home you’re purchasing. A title search is the primary component of “due diligence,” a process that will be started either by your attorney, if you are using one, or by the title company you choose. The title search determines whether the seller actually owns the property and if there are any claims against it.

6. Should I consolidate my debt?
A. Consolidating your debt can save you money in transfering to a lower interest rate and offers tax benefits. Discover your potential monthly savings by combining your bills into a single source. Eliminate high interest rate credit card and installment loans with a tax deductible (consult you tax advisor) consolidation loan. Use our calculator to figure how long before your savings equal the cost of obtaining a new consolidation loan.

7. What happens if the house I want to purchase does not appraise at the amount expected?
A. If the house doesn’t appraise at the amount expected, other alternatives are typically found. A second appraisal may be sought, the buyer may be willing to put more money down, the seller may adjust the price or offer other concessions, or the two sides may negotiate to split the difference between them.