1. Buying a house is a big financial commitment for most people. Before you say I do - here are 5 mortgage questions that you should know and 5 mortgage mistakes you should avoid.

1. What are my closing costs?  Your lender and several third-party service providers will charge you what are known as closing costs. In general, expect between 2 to 3 percent of your home's purchase price in closing costs. It must be paid by either a seller or a buyer and cannot be financed into the loan amount (you could when you refinance the property in the future but not when you first bought it). Within 3 days of receiving your loan application, lender must send you a document known as a Loan Estimate (LE). It includes a list of estimated closing costs. Within 3 days prior to your final signing, lender will provide you with another document - the Closing Disclosure (CD). The form lists all of your final closing costs. You must study both of these documents to ensure that your closing costs are as anticipated.
2. What is my interest rate?
Your interest rate is determined by your FICO score, down payment or cash, loan size, and property type (single family vs. condo). As your loan originator, I will explain how each will affect your mortgage rate. A good chuck of your monthly payment will go toward interest during the earliest years of your mortgage. Lower interest rate will save you money over life of the loan as well as lower monthly payment. Here are some reasons why you should work with me and not a national lender.

3. What is my monthly payment? Your monthly payment usually includes loan principal + interest + 1/12 of homeowners property insurance (impound account) + 1/12 of property taxes (impound account) + homeowners association dues (optional) + mortgage insurance (optional). Your lender will pay your property taxes and property insurance out of this impound account come due each year on your behalf. If you are buying a condo - please include monthly homeowners association dues with your monthly payment. If your down payment is less than 20% - you may pay monthly mortgage insurance.

4. What type of loan do I have? The most common are fixed loans usually with terms of 30 or 15 years. Your interest rate remains fixed for the life of the loan. Adjustable-rate loan is when the interest rate remains fixed for a set period usually five to seven years and then adjusts according to economic indices your loan is tied to. The initial rate is usually lower (teaser rate) but when it resets, your new rate could be higher than the rate you would have had if you had a fixed-rate loan.

5. Is there a prepayment penalty? This feature is no longer available with most residential loans in today's market.

It takes a whole village to assist you in buying a house. Start with getting yourself Pre-Approved with me. It's easy and it gives you piece of mind of your purchasing ability. You must be equipped to compete in this sizzling hot Seattle real estate market. 

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Pacific Coast Financial LLC

Lic# MB 78982

2150 N. 107th Street Suite 170
Seattle, WA 98133