While buying a new home is exciting, navigating the mortgage process can be a bit overwhelming. The variety of unfamiliar terms and endless paperwork can make the sale seem nearly impossible, and might leave you wondering where to turn. To alleviate some stress, learn the foundations of the process and consider the following answered questions.

4 FAQs About Mortgages

How does one obtain a mortgage?

To start off, meet with a lender. Ask around for recommendations from friends and family or start your search online. Gather all essential documents, such as employment, debt, income, and assets, and be ready to go over them in detail during this initial meeting. Their calculations will reveal which type of mortgage you qualify for and what your next steps should be.

Should I acquire pre-approval or pre-qualification?

Pre-approval and pre-qualification documents are fairly similar, and both state that you are likely to qualify for financing. Pre-qualification is when a lender reviews your case and provides an estimation on what you can afford. Pre-approval is the stage where your financial standing is verified and paperwork for the loan is started. The latter tends to be more significant in the home buying industry and shows that you’re ready to make an immediate offer.

What are the different types of mortgages available?

The three types of home mortgages include Federal Housing Administration (FHA), Conventional, and Veteran Administration (VA). FHA mortgages are the most common and provide a way for home buyers to make a purchase with a minimum of 3.5% down payment. Conventional mortgages are given to those who have exceptional credit and can make a larger down payment. VA mortgages are for veterans who meet certain criteria, allowing the buyer to finance the full value of the home. The new home owner can also ask the seller to cover up to 4% of the loan cost in closing concessions, including pre-paid taxes and credit reports.

Can my interest rates change?

This depends on the mortgage that you were able to obtain. In most cases, buyers are given a fixed-rate mortgage that won’t change during the length of the loan. Those with an adjustable rate mortgage will have a grace period that allows the interest to remain fixed. Once that window of time has passed, adjustments will be made to accommodate for the amount that is still due.

If you’re interested in securing a loan, reach out to Dan Main of St. Peters, MO. He has provided mortgage services to clients throughout St. Peters, MO for over 20 years and is recognized for his personalized approach. He works to find the ideal solution for each situation and connects with his clients. From down payment assistance to adjusting interest rates, Dan is ready to provide the finances you need to plan your future. Call (636) 284-4144 to set up an appointment or visit his website for additional information on his services.

Dan Main: NMLS # 502036
Flat Branch Home Loans NMLS # 224149
947 Waterbury Falls Dr
O’Fallon, MO 63368
This is for informational purposes only and not an offer to lend or extend credit.