Coldwell Banker - The Best Way to Find and Finance a Home

We Take the Mystery Out of Buying a Home

Choosing a home is one of your most important decisions. Finding the financing is another. The whole process can seem a little overwhelming. That's where Coldwell Banker can help. We take the mystery out of finding and financing a home-every step of the way.

Best Buyer Guidebook

Whether you're a first-time or experienced home buyer, you'll find everything you need to know- from finding to financing your next home- in our Best Buyer Guidebook. It has worksheets to help you determine your affordable price range and monthly payments, house hunting sheets to help you keep track of the homes you've seen, an explanation of different financing methods, an estimate of your closing costs, and even a glossary of real estate terms. It's all in the exclusive Coldwell Banker Best Buyer Guidebook. Stop by for your copy today.

Best Buyer Home Protection Plan

Once you've found that perfect home. the Best Buyer Home Protection Plan will provide you with peace of mind knowing you won't have to worry about unexpected repair bills after the sale. The plan covers heating, plumbing, electrical and hot water systems, as well as major built-in kitchen appliances. Best of all, the Best Buyer Home Protection Plan is administered by American Home Shield, the oldest and largest home warranty company with service provided by Sears, the nation's most trusted name in service.

Best Buyer Bonus Coupons

As our way of saying thank you, we also offer Coldwell Banker home buyers our Best Buyer Bonus Coupons. You'll find savings on Sears merchandise and services, and even a deferred payment option. It's a perfect way to make a new home really yours.

Expect the Best

Coldwell Banker is North America's premier real estate company, with more than 1900 offices. Our commitment to the highest level of customer satisfaction means helping people find and finance the home that's right for them.

Financing Methods

Fixed-Rate Mortgage

The fixed-rate mortgage is a traditional method of financing a home. The interest rate stays the same for the entire term of the loan - usually 15 or 30 years - so the interest and principal portions of your monthly payment remain the same.

Your payments are stable and predictable, but initial interest rates tend to be higher on a fixed-rate mortgage than on adjustable-rate loans. Many fixed rate mortgages cannot be assumed by a subsequent buyer.

Adjustable-Rate Mortgage (ARM)

The interest on an adjustable-rate mortgage is linked to a financial index, such are a Treasury security, so your monthly payments can vary up or down, over the life of the loan - usually 25 to 30 years. Some adjustable-rate mortgages

have a cap on the interest rate increase, to protect the borrower. The lower initial payments on ARMs make it easier for buyers to qualify. Some ARMs may be converted to fixed-rate mortgages at specified times, usually within the first five years.

Adjustable-Rate Mortgage Terms

Adjustment Period: The length of time between interest rate changes on an ARM. For example, a loan with an adjustment period of one year is called a one-year ARM, which means that the interest rate can change once a year.
Annual Percentage Rate (APR): The total finance charge (interest, loan fees, points) expressed as a percentage of the loan amount.
Cap: The limit on how much an interest rate of monthly payment can change, either at each adjustment or over the life of the mortgage.

Conversion Clause: A provision in some ARMs that enables you to change an ARM to a fixed-rate loan, usually after the first adjustment period. The new fixed rate is generally set at the prevailing interest rate for fixed-rate mortgages. This conversion feature may cost extra.
Index: A measure of interest rate changes used to determine changes in an ARM's interest rate over the term of the loan.
Margin: The number of percentage points a lender adds to the index rate to calculate the ARM interest rate at each adjustment.

Answers to
Frequently Asked Questions

Q. How long does it take to process a mortgage application?

A. Usually about 45 to 60 days, although it can take as few as 30 days and as long as 90 days for some transactions. The actual time depends on how quickly the lender can get an appraisal of the property, a credit report and verification of employment and back accounts.

Q. What documents will I have to provide?

A. Be prepared to provide verification of income (including a pay stub and recent tax returns), bank account numbers and details on your long-term debt (credit cards, auto loans, child support, etc.). If you're self-employed you may also be required to provide financial statements for your business.

In recent years, lenders have been required to obtain more specific information from borrowers in order to package and sell loans to investors. If you were lending someone such a large package, you'd want detailed financial information.

Q. Could anything delay approval of my loan?

A. If you provide the lender with complete, accurate information, everything should go smoothly.

You may face a delay if the lender discovers credit problems - a history of late payments or nonpayment of debts, or a tax lien. You may then be required to submit additional written explanations or clarifications.

You should also be sure to notify your lender if your personal or financial status changes between the time you submit an application and the time it's funded. If you change jobs, get an increase (or decrease) in salary, incur additional debt or change your marital status, let the lender know promptly.

Q. What do the closing costs include?

A. Closing costs cover processing and administration of your loan. In addition to a loan fee, you'll usually be asked to prepay interest charges, to cover the partial month in which you close, and impounds for property taxes, hazard insurance and mortgage insurance.

Q. When do my mortgage payments start?

A. Usually about 30 days after closing. The actual date of your first payment will be included in your closing documents.

Q. What's included in my payment?

A. Principal and interest on your loan. Depending on the terms of your loan, the payment also may include hazard insurance, mortgage insurance and property taxes.

Q. Can I pay those things separatly?

A. Not if it's an FHA-insured of VA loan. With most other loans, you can pay your own taxes and insurance if you borrowed no more than 80 percent of the purchase price or appraised the value of your home. Check with your lender to be sure.

Answers to Frequently Asked Questions

Answers to
Frequently Asked Questions