You might be scared when obtaining a mortgage if you are a first-time home buyer. But the process doesn’t need to be daunting if you are armed with knowledge about the mortgage application process.
A trusted mortgage company in St George, Utah lists some of the frequently asked questions about mortgages to make the process less scary for you.
1. How much should I pay for the down payment?
Unfortunately, some people have been discouraged from applying for a mortgage because of the issue of the down payment amount. You can get a conventional mortgage with as little as 3 percent down payment, a VA mortgage without any down payment, and 3.5 percent for an FHA mortgage. But you should talk to a mortgage company for clarity on other fees, such as the insurance costs.
2. Which documents do I need?
The documentation necessary during a mortgage application process varies from one buyer to another. However, some commonly required documents during the initial application process include your social security card and a month’s pay stubs. Also, the documents vary for employed and self-employed buyers.
Other important documents include your assets statements, driver’s license, executed purchase contract, bank statements, and a copy of the earnest money deposit check. You might also be asked for updated pay stubs and verification of employment.
3. Which type of mortgage is best for me?
Almost every home buyer has wondered what the right mortgage was for their needs. It is important to understand the different types of mortgages on the market, so you can choose the one that suits you best. Some common mortgage types include FHA mortgages, conventional mortgages, and VA mortgages.
You need to understand every detail or step of the mortgage application before you begin the process. These frequently asked questions will help you do so. Consult financial experts or your lender in case there is something unclear to you.