ACORN Housing FAQ
Q. Is ACORN Housing a Government Agency?
A. No, we're a non-profit organization that was established to help low-to-moderate-income
people become and remain homeowners. But our Housing Counselors are trained
and certified by the US dept. of Housing and Urban Development.
Q. How long will it take to get a mortgage?
A. That's up to you. Our Counselors can let you know what you need to
do but you are the one who will need to do it. Some people qualify within
a couple of weeks and are in their new homes within two months. Other
people take two years to move in. It depends on your personal situation
and how much effort you put into it.
Q. Who will see the information that you collect from us?
A. Only your loan counselor will see it until you are ready to meet with
the loan officer from the bank. Then you will need to give the Counselor
your permission to share the info with the bank.
Q. Why do I have to pay for my credit report?
A. ACORN Housing has to pay all three credit bureaus to run a tri-merged
credit report. We don't keep the $20. The fee is passed on to the for-profit
credit bureaus to run the current report.
Housing Vocab
Closing Costs:
The costs to complete the real estate transaction. These
costs are added to the total price of the home and are paid at closing.
Some examples of closing costs are points, taxes, title insurance, financing
costs, and items that must be escrowed.
Debt-to-Income Ratio:
The percentage of gross monthly income that goes
toward paying for your monthly housing expense, installment debts, alimony,
child support, car payments and payments on revolving or opened ended
accounts such as credit cards
Downpayment:
A portion of the price of a home, usually between 3-20%, not
borrowed and paid upfront.
Escrow:
The holding of money or documents by a neutral third party
prior to closing. It can also be an account held by the lender
(or servicer) into which a homeowner pays money for taxes and insurance.
|
