FREQUENTLY ASKED QUESTIONS

Purchase a Home

Q. How does Acre use my credit report?
A. Your credit report is used to evaluate your mortgage request by showing Acre how you have handled your credit obligations in the past. The following companies can provide you with a copy of your credit report, often free of charge.

Equifax
Website: www.equifax.com
Phone: 1-800-685-1111

Experian
Website: www.experian.com
Phone: 1-888-397-3742

TransUnion
Website: www.transunion.com
Phone: 1-800-888-4213

Q. What is a first time homebuyer?

A. The definition of a first time homebuyer meets the following criteria:

An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers).   A single parent who has only owned with a former spouse while married.   An individual who is a displaced homemaker and has only owned with a spouse.   An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.   An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.

Q. Can I buy a home if I have less-than-perfect credit?
A. Yes. Keep in mind that lenders don't just look at your past history, but also at your ability and willingness to pay in the future. At Acre, we may be able to help you buy a home, even if your credit isn't perfect.

Q. Which is better: a fixed or adjustable interest rate?
A. If you plan to be in your home for more than seven years, you may want to consider a fixed rate mortgage, which offers predictable payments and long-term protection against rising mortgage interest rates. If you plan to be in your home for seven years or less, an adjustable rate mortgage could be attractive. Keep in mind that with an adjustable rate mortgage, your monthly payments have the potential to go up each time your interest rate adjusts.

Q. When should you pay discount points?
A. When you pay a discount point, you are essentially paying part of your interest to the lender up front. This will lower your interest rate — as well as your monthly payment — over the life of the loan. One discount point is typically equal to 1% of the loan amount. For example, one point on a $100,000 loan would require payment of $1,000 at closing. Generally speaking, the longer you plan to remain in a property or hold your mortgage, the more advantageous it is to pay points. There is no requirement to pay discount points; whether or not you decide to pay points is completely up to you.

Q. What documents will I need to apply for a mortgage?
A. Traditional loans usually require documents that verify your employment, income and assets, and may include:

·         Your Social Security number

·         Pay stubs for the last two months

·         W-2 forms for the past two years

·         Bank statements for the past two or three months

·         One to two years of federal tax returns

·         A signed contract of sale (if you've already chosen your new home)

·         Information on current debt, including car loans, student loans and  

         credit cards.

Q. How much do I need for a down payment?
A. There is no set amount. In fact, you might be surprised to learn that many first-time homebuyer programs require as little as 0% down. Today, there are many loan programs that can be tailored to fit your needs and financial resources. Keep in mind that for down payments of less that 20%, private mortgage insurance may be required.