Question 1

Do I need to be pre-approved for a mortgage?

Accepted Answer

Getting pre-qualified for a mortgage is the best first step. Spend a few minutes on the phone with your lender or speak with our preferred lender (insert link to preferred lender tab or direct link to their website or email), and you’ll find out how much you’re likely to be able to borrow for the purchase of your new home. They will provide you with a pre-approval letter that you can submit to strengthen your offer when you decide to purchase in Pecan Knoll.

Question 2

What is earnest money?

Accepted Answer

Earnest money is a “good-faith” deposit that a buyer pays to the seller to confirm their intention of purchasing the home they have selected. This is done once they both sign the purchase agreement. Earnest money is held in an escrow account at the title company and applied to the purchase price at closing. Earnest money may get refunded in some instances, so make sure you pay close attention to the contract language in order to fully understand the details. The seller takes the home off the market while the transaction moves through the sales process, If the buyer cannot perform their obligations sufficiently to close on a home, the seller has to relist the property and look for a new buyer. If the home has to be relisted for sale, the earnest money helps the seller offset the additional expenses, such as interest, taxes, marketing, and other costs.

Question 3

What is a Homeowner's Association?

Accepted Answer

An HOA is an organization within a subdivision established to help maintain the rules of the community. The HOA usually has a governing board comprised of residents in that community that helps maintain the financial health and aesthetic standards of the neighborhood. The HOA provides services like landscaping, common-area maintenance, and self-governance for the community. It allows members of the community to set and enforce their own rules as well to protect the property values in the neighborhood.

Question 4

What are closing costs?

Accepted Answer

When your home is completed, you will finalize the purchase at the closing. Prior to closing, you will receive a Closing Disclosure which will provide details of the closing costs. Some of these costs include those for an appraisal, title search, title insurance, attorney fees, home inspection, loan origination, property taxes, homeowners association fee, and transfer taxes. Your lender will have a complete list of costs. Some closing costs can be rolled into your loan and others must be paid at closing.