Pinehurst Funding Group LLC

PINEHURST FINANCIAL CORPORATION

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Pinehurst Financial LLC was a Recipient in 2009 of a "Gold Star Certificate" from BBB of Denver/Boulder for having

ZERO COMPLAINTS

over the last three-year period!!!!

1.	What is the first thing you MUST DO before you start looking at houses to purchase? Answer
2.	How do I know how much house I can afford? Answer
3.	How do I know which type of mortgage is best for me? Answer
4.	How much cash will I need to purchase a home? Answer
5.	If I have already had an FHA loan can I still get another one? Answer
6.	If I used my VA loan can I get a new one? Answer
7.	What does my mortgage payment include? Answer
8.	What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
9.	What is an index and margin and how is used in an ARM loan? Answer

Q :	What is the first thing you MUST DO before you start looking at houses to purchase?
A :	Determine what your buying power is based on your target monthly payment number! You have already earned your potential interest rate based on your past payment history, current FICO scores, current earnings, how you prove those earnings, amount of liquid assets, and your current monthly debt load. After taking all of these factors into consideration we then apply a formula that gives us your target interest rate range. We then take that rate modeled against what you want your total monthly payment to be and come out with a purchase price number. We then give you an up/down monthly factor per thousand dollars to use in your buying decision going forwarded. A straight forward no hassle approach that eliminates surprises down the road.

Q :	How do I know how much house I can afford?
A :	Generally speaking, you can purchase a home with a value of two or three times your annual household income. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.

Q :	How do I know which type of mortgage is best for me?
A :	There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Pinehurst Funding Group LLC can help you evaluate your choices and help you make the most appropriate decision.

Q :	How much cash will I need to purchase a home?
A :	The amount of cash that is needed to close on a home depends on a number of items. Down Payment: If you are a Veteran and qualify for a VA loan, you can finance 100% of the purchase price amount. If you are taking out a new FHA loan you will need to have 3.5% of the purchase price come from your own funds (Seller cannot pay for you). Earnest Money: The good faith deposit that is provided by you to the seller at the time you make an offer to buy a new home. Generally you will need at least $1,000.00 in your account at the time of your offer. If you do not qualify for a new loan, or if you find something in your inspection that tells you not to buy the home, then you would get this money back. Closing Costs: These are the costs associated with processing the loan to purchase or refinance a house. In today's market it seems to be common practice for the seller to contribute upwards to 3% of the sale price of the home to cover the majority of these costs in a purchase situation. In a refi situation these costs are normally just rolled back into the new loan with no out of pocket expenses occurring.

Q :	If I have already had an FHA loan can I still get another one?
A :	Yes there is no limitation on how many FHA loans you have taken out to still qualify for a new loan

Q :	If I used my VA loan can I get a new one?
A :	The trick here is to find out if your loan benefit is active. If you had a VA loan previously and then let someone assume that loan, and they have never paid that loan off or refinanced it, you cannot get the benefit as your loan number is still on the VA books. If the loan was paid by you or the other party, your benefit is reinstated and you can then borrow again using the VA benefit. We will gladly help you figure this out with a quick phone call to us.

Q :	What does my mortgage payment include?
A :	For most homeowners, the monthly mortgage payments include three separate parts: Principal: Repayment on the amount borrowed Interest: Payment to the lender for the amount borrowed Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company. PMI is also a possibel charge based on the type of loan you have

Q :	What is the difference between a fixed-rate loan and an adjustable-rate loan?
A :	With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.

Q :	What is an index and margin and how is used in an ARM loan?
A :	An index is an economic indicator that lenders use to help adjust future interest rates for an Adjustable Rate Mortgage (ARM). A margin is a fixed number established in the ARM loan at the time of closing. Generally the interest rate that you will pay after your fixed rate period is based on the sum of the current index rate added to the pre-specified margin rate. Your loan will then include a maximum amount of interest change that can take place in any adjustment period. Three commonly used indexs are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the most common the London InterBank Offering Rate (LIBOR).