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1. How do I know how much house I can afford? Answer
2. How do I know which type of mortgage is best for me? Answer
3. What does my mortgage payment include? Answer
4. How much cash will I need to purchase a home? Answer

Q : How do I know how much house I can afford?
A : The amount that you can borrow will depend upon your income, employment history, credit history, current savings and debts, and the amount of down payment you are willing to make.  Give us a call, at 636-239-7831 and we can help you determine exactly how much you can afford.
 
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. Bank of Washington can help you evaluate your choices and help you make the most appropriate decision.
 
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 sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
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    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: No down payment required under the USDA loan program.  Down payment requirements may vary according to the loan program.
  • Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
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