Table of Contents
- What Are Netting Escrows & How Does It Work?: The Best Guide - January 2, 2024
- The Secret About Prescriptive Easement: Top Guide 1 Must Know - December 4, 2023
- About Home Equity Loans In Texas And How Can One Obtain It - November 27, 2023
List of Mortgage Questions that are Frequently Asked in Texas
Looking at the current market condition, more people are looking forward to buying a new house or refinancing their existing mortgage.
Whenever you decide to either purchase a new home or refinance your mortgage, there are many mortgage questions that you might have.
In today’s post, we will go through the Top 6 frequently asked mortgage questions in Texas.
Question No 1: What is a Mortgage, and Where do I Get One?
A mortgage is a loan given to a borrower to be able to buy a home where the borrower agrees to pay the amount every month for the course of 10,15,20 or 30 years depending on what you choose.
You can get a mortgage from a bank, credit union, or mortgage broker.
Question No 2: What are the rates like today?
That is a great mortgage question. However, the rates on the mortgage fluctuate daily. Moreover, the interest rates mainly depend on your credit score and the type of loan that you are applying for.
FHA loans would have a lower interest rate compared to conventional loans. Investment properties would have a little higher interest rate compared to primary properties and many such factors.
There are no two loans out there that are going to be the same. Hence, it is best to talk to your trusted loan officer to get a more accurate interest rate.
Question No 3: How much do I qualify for?
This is one of the most common mortgage questions asked by home buyers. It all boils down to how much money you make, how much money is going out. Your qualification amount depends on the debt to income ratio.
The better question to ask yourself is how much are you willing to pay per month for a house. Because that is going to help you understand what your budget is going to be.
You can always use an online qualification mortgage calculator to anticipate your approximate qualification amount.
Question No 4: Do I Need to be Pre-Approved?
One of the basic mortgage questions that a borrower asks is, do I need to be pre-approved to look at the houses? Technically, you don’t have to be pre-approved to look at homes online.
However, for you to start entering a house, you would need a real estate agent, and most real estate agents would require that you are pre-approved.
Once you are pre-approved, the realtor would be in a position to show you houses that perfectly fit your financial budget.
Question No 5: How much do I need for a down payment?
This is another one of the important mortgage questions asked by many buyers. Back in the day, the down payment used to be 20% and higher. However, now it is a lot harder to come up with 20% for a house.
Fortunately, with vast mortgage programs being introduced, you can go from anywhere from a minimum of 3% down on conventional loans. There are down payment assistance programs that allow you to make zero down payments.
Even VA and USDA loans allow borrowers for zero down payments on their loans. It all depends on what you are looking for and what you eventually qualify for.
Question No 6: What is an Appraisal, and is it Required?
An appraisal is a professional estimate of a home’s value, and yes, it is usually required to get a mortgage. An appraiser will inspect a property and compare it to similar homes nearby to determine its current value.
In some cases, you might also be able to qualify for what is called “Property Inspection Waiver.”
Conclusion
Even smart home buyers or homeowners may have mortgage questions. The above mentioned are the top frequently asked mortgage questions in Texas.
If you have any more questions, please make sure you get in touch with your trusted loan officer who can help you to make the right decision.
