We know mortgages can get a little confusing sometimes! Here are some of the most frequently asked mortgage questions and our answers.
How do I know what price range is right for me?
At Direct Mortgage Loans we can help determine what price range is best for you after reviewing your financial portfolio. We will review verified documentation regarding your income, credit history, employment, and liabilities. A trusted professional is always ready to assist you to determine how much you can comfortably afford.
Are there any upfront costs to prepare for?
There are never any upfront costs when starting an application or receiving a pre-approval letter. When coming to the closing table, you may need to prepare for closing costs and fees. We have many resources to help you prepare for buying a home!
How much should I budget for closing costs and fees?
There are many costs to potentially prepare for such as costs for an appraisal, title insurance, closing costs, and other insurances. The amount you need to budget for depends on many factors. Typically, closing costs and fees can add up to 3% – 6 % of the cost of the home. It is worth budgeting for ahead of time, however, there are possible options to lessen the financial burden such as seller’s help or factoring these costs into monthly payments.
What is the difference between a pre-qualification and pre-approval?
A pre-qualification and pre-approval are not the same thing, although many mistake them as so. A pre-qualification is simply an educated estimate of what you may be approved for when financing a home. A pre-approval is the verified, official estimate of the amount you are approved for borrowing. It is very important to get pre-approved prior to house hunting as this will give you a better chance of getting the home you want.
Why does my credit score matter when buying a home?
Your credit score is one of the heavily assessed factors when determining if you qualify for a loan. When providing a loan, the lender needs to make sure that the borrower will repay the loan properly, and that the borrower has a positive history of repayment. Your credit score shows a decent representation of a borrower’s ability to make payments on time!
What credit score do I need to buy a home?
Each loan program has unique eligibility requirements. Before discrediting yourself from becoming a homebuyer, contact our team.
I don’t have enough money for a 20% down payment, can I buy a home?
Yes! You do not need to have 20% down to purchase a home. Direct Mortgage Loans has many low-down payment home buying options. Our experts will work with you to determine a strategy and solution to help you become a homeowner.
Do you offer any free resources?
We offer many free resources to make you knowledgeable and confident about the home buying and home financing process. Some resources include:
Online Homebuying and Mortgage Video Courses: https://directmortgageloans.teachable.com/
Weekly News and Blog Posts: https://www.directmortgageloans.com/news/
Educational Guides and eBooks: https://www.directmortgageloans.com/resources/
If you have any more questions, always feel free to reach out to a loan officer! We are here to assist you with your mortgage questions and home buying journey!