Frequently Asked Questions
Q: Should I Buy? or should I rent?
A: You'll love the feeling of having something that's all yours - a home where you can decorate the way you want. A nice garden in your backyard, a comfortable living room... you can do it all your way when you own! There are more advantages to owning a home than personal satisfaction, for example, you can deduct the cost of your mortgage loan interest from your Federal Income Taxes, and usually from your State Taxes too. And interest will compose nearly all of the monthly payment, for over half the number of years you will be paying your mortgage. This adds up to hefty savings at the end of each year. Also, you are allowed to deduct the Property Taxes you pay as a Homeowner. In addition, your property's value usually will go up through the years.
If you rent, you pay your monthly payment and it's gone forever.
Q: Should I use a Real Estate Broker? How do I find one?
A: Using a Real Estate Broker is a good idea. All the details involved in home buying can be mind-boggling. A professional Real Estate Broker can guide you through the whole process and make your life easier. He or She will able to answer you many important things that you may be considering in the neighborhood, for example, the quality of schools, population, and crime rate, etc. The Real Estate Broker will help you evaluate the price range you can afford, search the classified ads, and multiple listing services for the homes you'll like to see. He or She can explain the cons and pros of different types of mortgages, walk you through the paperwork, and answer any related questions when you sign the papers at the closing. And it is FREE or you don't have to pay anything to the Broker because the payment comes from the Home Seller!
Q: How much money will I have to prepare for buying a Home?
A: There are many things you need to consider, for example, the cost of the house, the loan amount, and type of mortgage you are getting. Basically, you need to prepare enough money to cover Three Costs:
- Earnest Money: the deposit you make when you submit your offer (8 - 20% of the purchase price)
- Down Payment: a percentage of the cost of the home that you pay when you go to settlement (10 - 20% of the purchase price)
- Closing Costs: the costs for processing the paperwork to buy a house (3 - 6% of the purchase price)
Q: What other costs do I need to consider besides the mortgage payment?
A: You will have to pay the monthly utilities bills, for example, gas and electricity. You will also have Property Taxes, and you may have City or County Taxes. Taxes usually rolled into the mortgage monthly payment. You can consult the Real Estate Broker regarding these costs.
Q: What will the Mortgage cover?
A: It usually covers four parts:
- Principal - repayment of the amount you borrow
- Interest - payment to the lender for the money you borrow
- Homeowners Insurance - monthly payment to insure the property against loss from free, theft, and other hazards required by the lender
- Property Taxes - Annual City or County Taxes assessed on the property (divided by number of mortgage payments you make a year)
Q: What do I need when I apply for a mortgage?
A: Please check our preparation section for the detail.
Q: How do I know which type of mortgage is best for me?
A: There are lots of types of mortgages, you should know some of them before you shop around. The two common types of mortgages are Fixed-Rate Mortgage and Adjustable Rate Mortgage (ARM). Most people choose 15 or 30 years Fixed-Rate Mortgage because the interest rate stays the same for the whole term of the mortgage. Another type is an Adjustable Rate Mortgage (ARM), as it is called, the interest rate and monthly payment can go up or down. The changes or adjustment is tied to a financial index, e.g. U.S. Treasury Securities Index. To find out the best solution for your financial needs, please contact us and speak to our representative at
(212) 608-5588 or (718) 888-2431.
Q: What will happen during the Closing?
A: In the closing, you will sit at a table with your broker, the broker for the seller, the seller, and a closing agent. The Closing Agent will have documents for you and the seller to sign. The closing agent will give you a basic explanation of each document,. You may want to consult your Attorney to make sure what you are signing.