FAQs About Mortgages

When it comes to mortgages, hundreds of questions arise in the minds of first-timers and seasoned buyers alike. When it comes to mortgages there is no such thing as a dumb question. Some questions get asked more commonly and have been listed below along with their answers.

How Do I Initiate the Process of Getting a Mortgage?

The first step of getting a mortgage starts with seeking out a bank or mortgage lender.

The internet has changed the way people shop for services and this includes mortgages. It is relatively easy to shop for the most suitable mortgage options for your next house as most lenders now offer quick quotes on their website. This helps you give an idea of the potential offerings by each lender and ultimately helps you narrow down a list of potential candidates. Asking the realtor in your area is also recommended as most real estate agents have connections with top mortgage lenders.

What Documents Are Required for Getting a Mortgage?

The documentation required by lenders varies from buyer to buyer. Self-employed mortgage seekers are asked for different documents as compared to hired employees. However, there are common documents that most mortgage lenders require to process your application. These are:

  • Drivers license
  • Past two years W-2’s
  • Social security card
  • Bank statements
  • Asset statements
  • A fully executed purchase contract

What is the Difference Between Pre-Approval and Pre-Qualification?

One of the biggest mistakes that potential home buyers commit is not getting pre-approval. That is because many buyers confuse pre-qualification and pre-approval.

A mortgage pre-qualification is defined as an approximation of the amount a homeowner can be given. In most cases, the lender who pre-qualifies a potential buyer does so after getting information such as debt, income, and assets without verifying it. If the buyer has made a genuine mistake or is not truthful, then the pre-qualification is rendered void.

A pre-approval is a written commitment from the lender to the buyer and is something that every potential homeowner should obtain before looking at properties. The same documents are required to get a pre-approval when applying formally for a mortgage. A pre-approval is a great asset in a strong seller’s market and helps the buyer standout from the competition in a multiple offer case.

Are There Mortgage Programs Available for First-Time Buyers?

Many of the questions listed above are usually asked by first-time buyers. The very same people are also interested in knowing about mortgage programs that specifically cater to first-timers.

First-time buyers’ programs are offered in most cities and localities but you need to ask your mortgage lender if they are available in your area code. For example, a first-time buyers’ program in New York allows potential buyers to receive up to $7,500 in grant money towards their closing costs. But it is important to keep in mind that a seller may view someone who’s using grants differently than a buyer who’s putting 25% down.

If you want to learn more about how you can secure financing for your dream home, visit e-finance mortgage’s website or call them on (844) 433-4626. They are experts at guiding both first-time and seasoned buyers.