EDIE CLARK - Frequently Asked Questions

EDIE CLARK, SENIOR LOAN OFFICER

WARD LENDING GROUP, LLC

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EDIE CLARK

NMLS LICENSE# 13652

SENIOR LOAN 0FFICER

EDIECLARK@MSN.COM

FROM OREGON:

(503) 680-5156

FAX: (503) 296-5522

FROM WASHINGTON:

(360) 798-1501

FAX: (360) 571-0047

COMPANY LICENSES:

Corporate Office:

NMLS #37633

Beaverton Office:

NMLS# 301208

1.	How do I know how much house I can afford? Answer
2.	What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
3.	How is an index and margin used in an ARM? Answer
4.	How do I know which type of mortgage is best for me? Answer
5.	What does my mortgage payment include? Answer
6.	How much cash will I need to purchase a home? Answer

Q :	How do I know how much house I can afford?
A :	Generally speaking, the amount that you can borrow will depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give me a call, and I can help you determine exactly how much you can afford and which mortgage strategies will best meet your goals.

Q :	What is the difference between a fixed-rate loan and an adjustable-rate loan?
A :	With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage. During our consultation, I will listen to your goals and objectives, analyze your purchasing power, and then recommend several loans, their rates and associated costs to help you accomplish your goals.

Q :	How is an index and margin used in an ARM?
A :	An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).

Q :	How do I know which type of mortgage is best for me?
A :	There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. There are many different ways to help you buy the home of your dreams, but the right way should take into consideration your long and short term financial and investment goals, as well as your payment and equity objectives.

Q :	What does my mortgage payment include?
A :	For most homeowners, the monthly mortgage payments include three separate parts: Principal: Repayment on the amount borrowed Interest: Payment to the lender for the amount borrowed Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is optional on Conventional loans with a 20% down payment, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company. Government loans require taxes and insurance be part of your monthly payment Mortgage Insurance: Required on all FHA loans. Conventional loan products require Private Mortgage Insurance when the down payment is less than 20%

Q :	How much cash will I need to purchase a home?
A :	The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply: Earnest Money: The deposit that is supplied when you make an offer on the house Down Payment: A percentage of the cost of the home that is due at settlement Closing Costs: Costs associated with processing paperwork to purchase or refinance a house Down Payments vary among different loan programs. Effective January 1st, 2009 FHA loans require a 3.50% down payment. VA loans for qualified Veterans still offers Zero Down Payment loans. Conventional loans generally require a minimum of 5% down payment. Closing Costs may be paid by the Seller if negotiated in your Purchase Offer; your Realtor will be able to advise if that is an option. Different loan programs have different limits on how much of your Closing Costs the Seller may pay on your behalf.

Corporate Office: 360-709-9000
Ward Lending Group, LLC
2950 Limited Lane NW
Olympia, WA. 98502