First Time Buyer Video Page
First Time Homebuyer Videos
What is an HOA fee?
HOA stands for Homeowners’ Association and HOA fees are collected regularly by your HOA to cover management of your community and maintenance of common areas, including costs associated with any shared amenities (like pools and parks), and other areas which your HOA is responsible for maintaining to ensure your community stays beautiful and functioning.
What is a Mello-Roos?
If your are purchasing a home in California and your home is located in a certain type of tax district called a Mello-Roos, you may be required to pay a special tax to generally finance the construction and/or maintenance of infrastructure and other improvements like roads, utilities, etc. which benefit the properties which are a part of the tax district.
How do I get pre-qualified?
In order to start your pre-qualification process, please email either the Online Sales Concierge or Onsite Sales Manager at your neighborhood of choice to find out if pre-qualification is available for your neighborhood. If it is available, they will send you a link to their preferred lender. From there, the lender will work with you to pre-qualify for a loan amount that fits your personal needs. The order of your completed pre-qualification determines the purchasing order. Essentially, first come, first serve.
What is principal & interest?
“Principal” is the bank’s word for your loan amount. And “interest” is an additional fee you pay the bank for lending you the money upfront.
How much do I need to put down?
At New Home Co., our lenders offer programs for a variety of down payments – ranging anywhere from 0% to 20% depending on your personal financial situation.
Where does my credit score need to be?
Lenders work with buyers at all levels of credit score and you can also have a trusted family member or friend co-sign on the loan to make the process easier if need be.
What is escrow?
After your home offer is approved and you send in your deposit check, an “escrow” is opened, which is a contractual arrangement in which a neutral third party (the escrow holder) handles the exchange of money and certain documents to facilitate the purchase of your home. During the escrow process, the escrow holder may hold funds and documents (e.g., deposit, property deed, loan funds, etc.) in the escrow account until all conditions to the purchase of your home are satisfied by you and the seller. Once those conditions are satisfied, you will “close escrow” on your home and receive your keys for move-in. The escrow process is not available for all divisions.
Is a mortgage more than rent?
In many cases, monthly mortgage payments are comparable to monthly rental costs – but the benefits of owning far exceed those of renting. For example, in essence, making your mortgage payments serves as paying yourself as you own the property, and some day, you might be able to sell the home for more than you purchased it at, delivering a great profit. It is the best investment you can make.