Frequently Asked Questions Regarding Mortgages

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Scan through the list, or search for a specific question you have. If you don’t understand a term, check the Glossary. If you can’t find the answer you’re seeking on this Frequently Asked Questions page, call me and my team at 828-348-1907, or send me your question – I will be sure to get an answer back to you.

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Be sure to check the Glossary for definitions of mortgage terms and concepts. Did we miss a question on our Frequently Asked Questions page? Call me and me team at 828-242-4780, or shoot me a message if you have questions not listed here.

Prefer to chat face-to-face? I am happy to schedule a meeting.

Is now a good time to buy a house?

This is one of the most popular frequently asked questions regarding mortgages. The answer  constantly changes, and largely is based not just on the market and location, but also on your unique situation. Before you decide if you’re ready to buy a house, ask yourself these questions:

• Have you saved money toward a down payment?

• Are you a veteran or eligible for other assistance?

• Is your income stable and your credit score high enough?

• Do you understand the responsibilities that come with homeownership?

How can I compare one mortgage loan to another? What should I look for?

You’ll find many different types of mortgage loans, especially at an independent mortgage lender like Prime, but most have the same essential components. To decide between loans, compare these factors:

• How much you are borrowing (in other words, the size of the loan)

• How long you have to repay the loan (the term of the loan)

• How much interest you’ll pay (the interest rate or Annual Percentage Rate)

• Whether the interest can change over the life of the loan (is it fixed or adjustable)

• Whether you have to pay for discount points

• How much you have to pay for closing costs and when you have to pay them

How long do I have to work at the same job before buying a house?

While it used to be standard procedure for mortgage lenders to require at lest two years of employment, that not always the case anymore. Lenders still want to verify a stable income, but there are other factors to review, such as your debt-to-income ratio. Compare the requirements of your bank’s mortgage department with an independent mortgage lender to see who may be a fit for you.

Are there additional costs besides the primary mortgage that I’ll have to budget for?

This is a vital question often gets overlooked – you do have other costs to consider when buying a house. For example, mortgage lenders require that you carry adequate homeowners insurance. You also need to determine how much property tax you will owe, which usually is paid monthly with your mortgage payment.

Should I get a fixed-rate mortgage or an adjustable-rate mortgage?

The most common mortgages will have a set duration (say, 30 years) and a fixed rate (an interest rate that stays the same for the life of the loan). Before just playing follow the leader, consider sitting down with me and my team to find a mortgage loan that fits your financial resources and your ability to repay the loan. An adjustable-rate mortgage (ARM) can save money for some people, but they are not for everyone. I will personally work with you to match your needs to a mortgage.

Do I always need a 20% down payment?

Down payment amounts are one of the most commonly frequently asked questions regarding mortgages. While banks often require a significant down payment when applying for a mortgage, certain types of loans and specific government programs can reduce the amount you need (even to zero dollars down), especially if you’re a first-time homebuyer or a veteran. Talk to an independent mortgage lender before starting to look for a house.

How do I know how much I can borrow?

For a quick estimate, check out our Mortgage Calculator. This calculator gives you a rough idea of how much your mortgage payments will be for a specific amount that you borrow. Simply enter the cost of the house, the interest rate, and the life of the loan. Of course, that assumes you know or can find these amounts. To better understand how much you can borrow, give me a call and we can talk it through, and get you preapproved or pre-approved for a loan, so you’ll have a better idea of how much house you can afford.

What’s the difference between getting preapproved and getting pre-approved?

In general, pre-qualification is a non-binding estimate of how much you can borrow, and pre-approval determines how much the lender is willing to loan you. For more information, read the Get Pre-Qualified page.

What’s the difference between a loan’s APR and its interest rate?

The APR, which stands for the Annual Percentage Rate, refers to the total yearly cost to you, which encompasses the interest and fees you pay over the life of the loan. The interest rate is simply the interest percentage on the principal amount of money you are borrowing. So while the interest rate may seem enticing, the APR — what you pay — is always going to be more.

What documents do I need to apply for a mortgage loan?

You’ll have to supply financial paperwork that shows your income, debts, and past payment history. Which specific paperwork you will need to provide depends on many factors. Check out the complete list on the Document Checklist page, but be sure to speak with me to see what specifically you will need.

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Zack and his team were so helpful during my home buying experience. My family had an opportunity to purchase a home through a private sale. Zack went above and beyond walking me through the steps, linking me up with the lawyers, and even recommending real estate agents that could answer my questions.Three areas that I found above and beyond were the communication/reachability, messaging system, and their online portal. The team was very easy to get in touch with during all phases of the loan process. I never felt like I was trying to figure something out on my own. They also have these automated messages that keep you on track and provide what to expect during the next step. I also found that using their online system to sign and upload documents was super easy to use. I would use GoPrime Mortgage again and will continue to recommend Zack’s team to anyone in the housing market.

Tony M.

Zach and his team were very helpful during the purchase of our new house in Hendersonville. He worked with us to find financing options that met our needs, and gladly answered our many questions along the way. He made the whole process as easy as possible – the portal we used made it clear where we were at in the process, and what we needed to do and when. Everyone we worked with was very responsive, friendly, and personable. Thanks GoPrime!

Mary A.

When a previous lender couldn’t meet our overall needs (nearly a week out from closing), our realtor recommended that we attempt and pivot to a new lender local to the Asheville area — Zachery Adam at GoPrime. Although it was stressful to think we had to switch lenders mid-contract, Zack made the entire process smooth from beginning to finish. Not only did he expedite everything, but he was extremely communicative and was with us during every step of the process. We were ultimately able to close on our dream home in approximately 3 weeks! Unbelievable. We can’t thank Zack and his team enough for their professionalism and hard work. If you’re looking to purchase a home in the area, we highly recommend Zack and GoPrime! Thanks guys!

Josh T.

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