Answer: You will need to pay closing costs on your home loan, which you can pay upfront or some or all of the costs may be rolled into your principal or included in your APR. The fees you need to pay and the amounts will vary depending on what home loan you choose.

Legacy is here to help make the homebuying process easier and we’ll make sure you fully understand your closing costs before you finalize your loan. Costs may include:

• A loan origination fee. This may be 1% of your loan amount or it may be waived depending on your loan type.
• Underwriting and processing fees. These are charges for checking all your financial information and documents.
• Title search and title registration fee. This checks there are no existing liens on your property so you don’t get landed with debt later.
• Inspection fees. It’s a good idea to have your home inspected to check for any issues.
• Appraisal fees. You may need to get your home appraised to check if the current market value of your home matches the selling price.
• Property taxes. You may need to pay taxes in advance and they may be held in an escrow account.

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Answer: Buying a home can be confusing because there are many different terms and abbreviations you need to remember so you understand exactly what home loan you’re getting. Here are a few of the most common phrases:

• LTV is the loan-to-value ratio, which measures how much you’re borrowing compared to the appraised value of the property you’re buying. If your LTV is 80%, you made a down payment of 20%.
• DTI is the debt-to-income ratio which is how much total debt you have compared to your total income. Lenders want you to have a DTI under 43% but some loan programs may allow for higher ratios.
• PMI is private mortgage insurance. You usually need to pay this if your down payment is under 20% and you have a conventional mortgage, not a government-backed loan.

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Answer: You may think a 30-Year Fixed-Rate home loan is your best option because it’s very popular. But an adjustable-rate mortgage (ARM) can be a good choice when market interest rates are high, or if you’re only planning to be in your home for a short time.

• A fixed-rate loan offers steady payments and easy budgeting over your chosen loan term of 15, 20, or 30 years. Terms of 10 years are generally for a mortgage refinance only.
• Longer terms give more affordable payments while shorter terms save on time and interest.
• An ARM offers a low, fixed rate for an agreed-upon period and then your rate adjusts (up or down) with the markets on a schedule. For example, 5/1 is fixed for 5 years then it adjusts each year.
• Your payment is usually lower for an ARM than for a fixed-rate loan during the initial period.

For a limited time, Legacy is offering a Special Program 5/1 Adjustable Rate (ARM):

• 6.00% Rate, 6.367% APR Up to 95% LTV.
• No Origination Fee.
• PMI on LTVs greater than 80%
• Requires 720 minimum credit score and debt to income not to exceed 43%.
• Rates are subject to change without notice.

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Answer: As part of our First-Time Home Buyer Program, you get access to all the Legacy home loans we offer to repeat buyers, including fixed-rate mortgage loans and adjustable-rate mortgage (ARM) loans. Plus, you get a choice of loan terms and we’ll work with you to secure a competitive interest rate.

The main difference is that we offer our first-time home buyers additional guidance and information so you can feel confident throughout your home buying journey and through each step of the closing process.

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