Looking to build or purchase a new home? Buying a home is one of life's most important decisions,  that's why the New Homes Specialists at Sunrise Homes will help guide you every step of the way. Here are few Q/A's that every home buyer should know...  Pre-qualified for a mortgage or pre-approved?

Do you know the difference? Pre-qualification is just an estimate of what the lender thinks you can afford. Pre-approval requires that you submit a loan application with necessary documentation, which assures that you can obtain a mortgage for a set amount. What should you expect to pay for closing cost? In addition to your down payment, you will need to budget for approximately 3 to 6% of the purchase price to cover closing costs/prepaids. These usually include the loan origination fee, discount points, title insurance, government recording charges, transfer taxes, initial deposit for escrow account for property taxes and hazard insurance. Do you need private mortgage insurance? If your down payment on a home is less than 20% of the appraised value, private mortgage insurance will be required. This protects the lender if you default on your loan. When are you required to buy title insurance? In order to get your loan, you're required to pay for lender's title insurance at closing. It shields the lender in case a problem with the property's title arises such as unclear wills and unpaid taxes. Homeowner's Insurance: In the event of a flood, would I be covered? This is a common mistake for homeowners. Most homeowner policies don't cover floods. You will need to purchase a separate flood insurance policy to protect against all types of flooding, manmade or natural. Knowing what to expect as you begin your search for a new home will make the process much easier to navigate. Call or visit one of Sunrise Homes' many communities… Our New Home Specialists can help you every step of the way. www.sunrisehomes.com   Reference: www.Kiplinger.com