Your Home Buying Journey Starts Here.
IS RENTING OR BUYING THE BEST OPTION?
While it may seem that owning a home is the best choice, that might not necessarily be the case for everyone. Consider all the factors, good and bad, that come with owning a home. Once you compare renting and owning, then you are ready to make the best decision for your current situation.
Kamp Hüs, Kampen
Hauptstraße 12, 25999 Kampen
Drive-In Flughafen Westerland
Flughafen Sylt, Halle 74, 25980 Sylt
Trift 1, 25980 Sylt
Hörnumer Straße 80, 25980 Sylt
Hafenstraße 1, 25980 Sylt
Hangstraße 21, 25997 Hörnum
Parkplatz Buhne 16, Kampen
Lister Straße, 25999 Kampen
Coming Soon: Inselzirkus, Wenningstedt
Kampener Weg, 25996 Wenningstedt-Braderup
Hotel Stadt Hamburg, Westerland
Strandstraße 2, 25980 Sylt
Hotel Miramar, Westerland
Friedrichstraße 43, 25980 Sylt
Hotel Severins Tiefgarage, Keitum
Am Tipkenhoog 18, 25980 Sylt
Muasem Hüs, Morsum
Großmorsum, 25980 Sylt
Landwehrdeich 1, 25992 List
Begegnungsstätte, Friedrich Pausen Straße 6, 25899 Niebüll
Enge-Sande, GreenTEC Campus
Lecker Str. 7, 25917 Enge-Sande
BUILDING YOUR BUDGET
Having a clear budget is key. Answering a few questions before you begin looking will help you find the best loan option to fit your budget. Do you have a down payment? What is your income-to-debt ratio? What is your credit score? These basic answers will go a long way to making informed decisions.
What is Your Debt to Income (DTI) ratio?
If a loan program uses a 28/36 ratio, this means you are allowed to spend no more than 28% of your pre-tax income on monthly payments and no more than 36% on total debt. So if your monthly gross income is $5,000, your maximum monthly payment should not exceed $1,400 while your monthly debt should not exceed $1,800.
How Much Home Can You Afford?
The down payment is based on a percentage of the selling price and is due at closing. If you can make a down payment of 20% or more, you can avoid the cost of mortgage insurance. If you are unable to make a 20% down payment, don't worry, there are many other affordable mortgage programs that can fit your financial situation.
What Will Your Interest Rate Be?
Interest rates directly affect your payments. We also offer a float down option which gives you the ability to reduce your rate if the market improves after you lock your rate. The float down option is applied to the interest rate only and is based on the initial lock period; it may be utilized with all conforming loans – both government and conventional.
STEPS IN THE CLOSING PROCESS
You’ll review and sign all of your loan docs. Make sure that each document is explained clearly. If something is not what you expected, don’t sign until the issue is resolved.
You'll give a certified, wire or cashier’s check to cover your closing costs, prepaid interest, taxes, insurance and, if applicable, your down payment.
Next, we (your lender) will distribute or wire the funds covering your home loan amount to the closing agent.
Depending on your loan, you may be required to set up an escrow account so you can pay your taxes and insurance along with your mortgage payment.
Includes homeowner’s insurance, mortgage insurance and the costs to set up an escrow account. Because they vary based on the type of property and the time of the closing, prepaid expenses are difficult to determine.
Out of Pocket Fees
Fees for appraisals, attorneys, title, credit reports, deed recording, tax services, home inspections and other miscellaneous expenses are all included in your potential out-of-pocket expenses.
A discount point is 1% of the loan and reduces your rate. Consider a rate at 7.75% with 2pts, or at 8.25% with no points. The lower rate would reduce your payment, but would require $2,000 (2pts) at closing.
HUD-1 Settlement Statement
The itemized list of the final credits and charges, for both you and the seller, based on the terms of the contract. You should receive a copy of the HUD-1 at least one day prior to the closing for your review.
The mortgage promissory note is a legal “IOU” that represents your promise to pay the lender according to the agreed terms, including the dates on which you must make your mortgage payments and where they must be sent.
Deed of Trust
The documents in which you agree to a lien on your property, as security for repayment of your home loan. For example, the lender (bank) gives the borrower (you) a loan for the house and you make monthly payments to the bank.