It can be a challenge for first-time home buyers to know what information is accurate and what information may be misleading or even false. Unfortunately, many first time home buyer mortgage questions are incorrectly answered on online blogs and articles.
Often these errors are not intentional, but simply out of date or no longer accurate due to changes in the mortgage industry. Working with a highly reputable mortgage company is always the best option as these companies provide professional customer service and honest answers to questions.
To help get started, here are two common first time home buyer mortgage questions. As each individual borrower will have a different set of factors, verify all information with your lending officer and make sure it applies to the type of loan you are considering.
Do You Need to be Preapproved?
There is no need to be preapproved for a mortgage, but it does provide information on the type of loan you will qualify to receive, helping you know the types of homes to look at and consider. Preapproval also provides you with information on qualifying for the loan once an offer is made on the home.
Keep in mind, sudden changes in credit scores, employment or income levels can impact the ability to get a loan even if preapproval was provided by a lender. Avoid changing jobs, making a large purchase or opening up new credit cards during this period.
How to Determine Homeownership Costs?
Top companies offering first time home buyer mortgage loans will have several handy tools to use on their website. Online mortgage companies are often the best first step as they provide calculators that will determine mortgage, taxes and other homeownership expenses.
Don’t forget to also consider maintenance and repair costs as well as the PMI (Private Mortgage Insurance) if it is required for a down payment of less than 20% of the home value.
The lending experts at Guaranteed Rate can answer all first time home buyer mortgage questions with precise, detailed and personalized information.
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