Top 10 Questions About Mortgages
So many questions about mortgages! We understand. Buying a home is an intense process and whether its your first time or fifth time, there are a lot of things you need to know before you take the plunge. We have already collected a list of frequently asked questions on our website, but it never hurts to update things every once in a while. Here are 10 of the most common questions about mortgages we are asked. And don’t forget to let us know if you have any more.
- Where Do I Start?
For us, this is the question many home buyers forget to ask. They often start by googling homes in the area or contacting real estate agents to start looking. But we have always maintained that the healthiest first step is to contact a lender.
It’s hard to know how much home you can buy or what your budget is if you haven’t reviewed your financial options first. Talking to us out of the gate can prevent heartbreaking horror stories in the future.
- When is a Good Time To Buy a Home?
This is a complex question with a variety of answers. They fall in to two general categories: the market and personal factor.
You may mean when in your life is a good time to buy a home. Do you buy one to build equity? Do you buy a starter home? Do you buy a forever home? Or you may mean what time of year or at what rates are best to buy a home. Whatever the case, the best first step is to figure out your financial plan.
- What Kind of Mortgage Company Are You?
Simply put, we are an Independent Mortgage Lender. GoPrime Mortgage, Inc. . is also a team of people who can work together to ensure you get the best deal for the home you want to buy.
- How About Refinancing?
Do you already own a home and are you interested in refinancing options? Refinancing allows a borrower, that’s you, to get a better interest term and rate. It pays off your existing loan with a new first mortgage. It can also allow you to pull out equity, buy a new property, pay off debts, or invest your equity in other avenues. That is a cash out refinance. Whether or not it’s the right decision for you is based on a few factors, so we suggest talking to us more about it.
- What’sThe Difference Between Prequalified and Preapproved?
In general, pre-qualification is a nonbinding estimate of how much you can borrow and pre-approval determines exactly how much the lender is willing to loan you, as they issue a full Loan Commitment. For more information, read the Get Pre-Qualified page.
- What if I’m Self Employed?
A major question in Asheville is about self-employment. So many of our community members work for themselves, so it’s not surprising. And if you’ve believed you can’t own a home because you’ve been self-employed, then you’ve also been misinformed. Every situation is different, but we can help you walk through the process.
- Do I Need to Work Two Year at My Current Job Before Buying a Home?
Outdated assumptions are to blame for these kinds of questions. There was a time when this was true but it’s not always the case anymore. Lenders will still want to verify a stable income, but there are other factors they can review as well, schooling, training certificates, or career moves that still align with similar industries, positions, etc.
- How Do I Know My Budget?
A popular questions about mortgages. You can always start with a quick estimate using the mortgage calculator. It can give you an idea of what your monthly payment will be based the amount of the loan. Enter the cost of the house, an interest rate, and the life of the loan. Of course, in most cases, these will only be an estimate.
For a better understanding of how much you can borrow, contact GoPrime Mortgage, Inc. . and we can walk you through the process to get preapproved or pre-approved for a loan so you know your real budget.
- What’s the Difference between Fixed and ARM?
The most common mortgages have a set duration and a fixed rate. For example, you’ve probably seen 30-year mortgages with an interest rate that stays the same for the life of the loan. But there are other options.
The right mortgage loan for you can depend on your financial resources and ability to repay the loan faster. For some, an adjustable-rate mortgage or ARM can save money. Your best bet is to talk to us to find out more.
- What Do I need in Order to Start?
And we’ve brought it all the way back around – questions about mortgages .
You’ll have to supply financial documents that show your income, debts and past payment history. Which specific paperwork you will need to provide depends on many factors. Check out the full list on the Mortgage Document Checklist page, but you likely won’t need everything. Speak to an independent mortgage lender, like us, for the documents that you will need for your specific case.
There is so much more we could tell you, the real questions about mortgages – Frequently Asked Questions list can be miles long. For these and answers, we do encourage you to review our FAQ page on our website here. We are also here to talk to you, and we love to talk. Give us a call at 828-348-1907 just to see what your options are and we can point you in the right direction.
