1. What items make up my total mortgage payment at closing?
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. 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 so you understand your choices.

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 an underwriting decision 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.

The fastest way to receive your underwriting decision is to come to your loan appointment fully prepared. If you come to the interview with you loan officer with all the proper documentation, you will have done a great deal to assure prompt processing of your application.

At HomeAmerican, we 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 we need additional information or documents during processing. Quick response to our requests helps us keep the process on schedule. In order to protect both you and HomeAmerican, mortgage loans require much more paperwork and legal documentation than automobile or other installment loans. 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 the home of your dreams.