1. What items make up my total mortgage payment?
Mortgage payments are made up of four basic components–principal, interest, taxes, and insurance–commonly referred to as PITI. The principal and interest portion of your payment is based on your loan amount, interest rate, and loan term. Taxes are based on 1/12 of the annual property taxes (calculated at fully assessed value for new properties). Insurance is based on 1/12 of the annual premium for your homeowners insurance.

2. What is the right type of mortgage for me–fixed or adjustable rate?
With a fixed-rate loan, the principal and interest portion of your payment will always remain the same for the life of the loan. With an adjustable-rate loan, the principal and interest portion of your payment will change periodically depending on whether interest rates are increasing or decreasing. Fixed-rate mortgages are the most common type selected by borrowers. Most borrowers like the stability of a fixed principal and interest (P&I) payment when planning their budget. Your Loan Officer can explain the products available and help you select the one that is best for you.

3. Must I wait to buy a new home if I currently have debt?
Not necessarily. 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–apply today! 

4. How can I reduce the anxiety of waiting for my loan approval? 
For many homebuyers, the period of time between the submission of the loan application and receipt of the commitment letter is one of uncertainty and concern. There are a number of things that both you and HomeAmerican Mortgage Corporation can do to reduce the stress.

Loan underwriters are looking for ways to approve loans. The fastest way to receive your loan approval is to come to your loan appointment with all of your documentation. If you have come to the interview with the Loan Officer fully prepared and have provided good documentation, you have done a great deal to assure prompt processing of your application and approval of your loan.

HMC will make sure that lines of communication are kept open. Your contact person may be the Loan Officer, but often it might be someone else in our processing department who can tell you the status of your application. Try to be accessible if HMC needs additional information or documents during processing. Quick response to our requests helps keep the process on schedule. In order to protect both you and HMC, mortgage loans require much more paperwork and legal documentation than automobile or other installment loans, and we do not ask for more than is absolutely necessary. If you understand the lending process and are prepared to do your part, your loan approval will be a simple but key step toward owning a quality Richmond American home.