Frequently Asked Questions
1. DO I HAVE TO HAVE GOOD CREDIT?
No. We do check credit to verify the information that you have provided to us on your application is accurate but our decision to approve your loan is not tied to a credit score.
2. WHAT ARE CLOSING COSTS
Closing costs are costs associated with purchasing a home. These costs include title company fees, attorney document prep fees and also prepaid property taxes and insurance.
3. DOES MY PAYMENT INCLUDE TAXES AND INSURANCE?
Yes. Taxes and insurance are part of your monthly payment. When your tax bill and insurance bills are due, Alamo Home Source pays them for you from your escrow account.
4. WHAT DOES ESCROW MEAN?
Escrow means that we are collecting your taxes and insurance monthly and keeping them in a special “escrow” account. Think of it like a savings account for your tax and insurance bills. When the bills come due, you have already saved the money to pay the bills.
5. IS MY INTEREST RATE FIXED OR ADJUSTABLE?
Your interest rate is fixed, which means the principle and interest portion of your payment will never go up. Taxes and insurance prices do fluctuate and can affect your payment. Once a year we adjust your monthly payment if taxes or insurance goes up or down.
6. WHY DO I HAVE TO HAVE MY PAYMENT DRAFTED DIRECTLY OUT OF MY ACCOUNT?
Alamo Home Source extends credit to buyers that cannot get traditional financing from a bank. We are not in the collection business and promptly turn any payment issues over to our attorney to start the foreclosure process if necessary. Direct payment withdrawal from your account is required for loan approval and is designed to avoid collection problems and a potential foreclosure.
7. WHAT DAY OF THE MONTH IS MY PAYMENT DRAFTED FROM MY ACCOUNT?
All monthly payments are drafted on the first of the month only. Many people get paid on different days of the month. Keep a minimum of one extra monthly house payment in your bank account and you will never have a problem with a bounced payment.
8. CAN I PAY MY LOAN OFF EARLY?
Yes. There is no prepayment penalty and you can pay off your loan or refinance at any time.
9. DO I HAVE TO HAVE A SOCIAL SECURITY NUMBER TO BUY A HOUSE?
No. If you do not have a social security number, the title company will need a passport from your country of origin for notary purposes.
10. WHAT IS A BALLOON PAYMENT?
A balloon payment occurs when a loan is not fully amortized. Alamo Home Source loans usually have a 10 year balloon, which means that the loan needs to be paid off or refinanced within 10 years.