Homeowner Frequently Asked Questions (FAQ)

Our FAQ section is designed to answer common questions asked throughout the home buying process.


Q1:      What are the benefits of buying a home versus renting a home?
A:         First, consider the ratio of the cost of a home versus annual rent.  Especially in
             today’s economy, the scales may be tipping in favor of buying over.
             From the perspective of smart financial management, buying is often your best
             option. Owning an appreciating asset, particularly in times of inflation, is a smart
             direction to take.  Tax laws favor buying, your interest and property taxes are
             deductible, and the gain on sale is tax free to certain limits.

Q2:      Am I ready to buy a home?
A:         It’s a good question.  Have you paid down (or off) the majority of your debts (credit
             cards, auto)?  Do you understand what you can realistically afford? Do
             you have the financial stability (secure job) to make a mortgage payment?

Q3:      What does a monthly home mortgage payment consist of?
A:         There are four segments to a monthly mortgage payment:
            Principal: repayment of the original amount borrowed.
            Interest: the cost of borrowing the principal amount.
            Taxes: real estate taxes.
            Insurance: homeowners insurance.
            This is known as the PITI (Principal/Interest/Taxes/Insurance) payment.

Q4:      How does my credit history impact my ability to get a home loan?
A:         Your credit rating impacts the type of terms you can expect from your lender.
              Here is a guide to help you understand the main factors that determine your Credit
             Grade.
             Your Mortgage Credit -- Your payment history on your existing, or previous
             mortgage.
             Your Consumer Credit -- This category relates to installment and revolving credit
             like car or student loans.
             Your Public Records – This category relates to public records such as previous
             bankruptcies, collections, foreclosures and judgments.
             The more serious problems in your credit history, the lower your grade and the
             higher the rates and fees to you.

Q5:      How is a Conaway Home built better than most homes?
A:         We’re glad you asked.  In fact, there are several reasons but one of the most
             important is that every home is built using our Built Smart Software™.  We
             developed this software to record, monitor, track every stage of the construction
             process so that we build more efficiently (faster) with greater quality controls at
             every step and never compromise excellence in any way.

Q6:      Can we alter the floor plan of a home under construction?
A:         Yes, by using our Smart Space System™.  Simply select the home you prefer and
             go to our Build Your Own Home section.
             The Smart Space System™ allows you to change the blueprint to:
             1. transform a formal dining room into an office space
             2. transform a game room into a third bedroom
             See it! Do it! ... and we’ll build it!

Q7:      How long will it take to process my mortgage loan application?
A:         Most loans take about 45 to 60 days to process.  Some may take as long as 90
             days or as few as 30. Key to completing the process is how quickly your lender
             can get an appraisal of the property, your credit report, verification of your              employment and current data about your bank accounts.

Q8:      What documents do I need to provide my loan officer?
A:         Make sure you have proof of income and any assets you have for a mortgage loan.

Q9:    What guidelines do I use to qualify for a loan?
A:         The qualifying guidelines generally relate to your:
             1. income
             2. employment
             3. assets
             4. liabilities
             5. credit history

Q10:    Why do the mortgage interest rates fluctuate so much?
A:         Rates often vary due to supply and demand.  When there is a high demand for              credit (in this case loans) then rates will usually rise.  When there is less demand
             for credit, sellers must e more competitive and you get a better deal.
            There are other dynamics that affect rates, including:
            • inflation
            • bond prices and bond rates
            • short-term interest rates (determined by several factors including the Fed)

Q11:    Where can I find out about my credit rating?
A.         Click on the link below for your private credit score with all three major reporting
            companies.
            • Free Credit Report with All 3 Scores
            • Free 3-bureau Credit Report – includes Transunion, Equifax, Experian
            • FreeCreditReportsInstantly.com