6 Most Commonly Asked Questions: Mortgage FAQs

So, you’re thinking about buying a home. But you know it’s a huge purchase and you’re a financially responsible person. That’s why you’re focused on the numbers first. Preparing for the purchase of your home really requires three things: research, considering your budget and long-term goals, and talking with a lender abour the best mortgage options for you.

The world wide web is quite a big pond, so navigating information about down payments and mortgage information can be an undertaking. To help you get a head start on your journey, I’ve put together the most common questions that I get from buyers.

How do I know if it's time to buy instead of rent?

If you know where you want to live, have a steady and secure income, and are ready for the responsibilities of homeownership, then it’s a great time to invest in property.

How much do I need to save up for a down payment?

A conventional loan down payment is usually 20% of the sales price, but other types of financing require as little as 3.5% to 15%. A mortgage lender can tell you what types of loans you qualify for.

How do I know if I qualify for a loan and how much I can afford?

I can recommend you a list of mortgage lenders that will help you started. They will work with you on a pre-approval. The lender will ask you some basic questions about your income and debts and can tell you what amount you can be approved for, and how much your mortgage payments will be.

What does the lender need from me to give me a loan?

Usually, you are asked to provide your last two tax returns to show proof of income. You should also provide recent bank and credit card statements and proof of your current pay rate. You will also be asked for your social security number so they can run a credit check.

What's the difference between pre-approved and pre-qualified?

While often used interchangeably, these terms don’t mean the same thing. Pre-qualification is an estimate of what you may be approved for based only on the verbal information you provide. Pre-approval means the lender has verified your income and debt information and run a credit check.

How do I know which mortgage option is right for me?

Your mortgage lender is the best person to advise you on this question. Their products and qualifications change from time to time, so they would know best what products are available to meet your needs.

I work with the best of the best in the industry. I’d love to help you get a kickstart on the pre-approval process, so when you’re ready, shoot me a message and I’ll send you my lender suggestion list!