Q. I keep hearing the term REO. What does it mean?
A. REO is an acronym for Real Estate Owned, used by financial institutions (banks), referring to properties they have foreclosed on.
Q. Why do I need to get pre-approved before I find a home to buy?
A. Although it may seem like an unnecessary burden prior to finding the home you want to purchase, it actually gives you purchasing power. More and more sellers demand to know the person making an offer on their home is a qualified buyer and has been pre-approved by a mortgage loan officer.
Q. How do I know what my closing costs will be when I buy a home?
A. When you get pre-approved, the loan officer will provide a document (HUD-1) showing all your costs. The average is about 3-3.5% of the loan amount.