First-Time Homebuyer Dallas Mortgage: FAQ – Part 2
Part 2: Obtaining Financing for Your Home Purchase
After finding the perfect home within your price range, the next step is to obtain your Dallas home mortgage. Unfortunately, obtaining financing can be a bit overwhelming and confusing for some home buyers. By answering a few simple questions, however, you will be far better prepared for the home financing process.
How can determine how much I can afford?
The only way to know for certain how much you can borrow for a mortgage loan is to consult with a mortgage lender. To contact a Dallas first-time homebuyer loan expert, call PrimeLending today: (800) 308-8503. You may also use one of the many available online mortgage calculators to help you get a rough idea of how much you can afford.
How can I find a mortgage lender?
When choosing a lender, it is important to take the time to review various options in order to find the best option for you and your family. Your real estate broker should be able to recommend a few lenders in your area, but you should also look for potential lenders on your own. If you are interested in an FHA loan, keep in mind that you must select a HUD-approved lender. Our PrimeLending mortgage team is a HUD-approved lender and we are here to assist you with no application fees, great rates, low fees and 30-day closings.
How long will it take to complete the loan approval process?
PrimeLending can close your loan in 30 days or less, while most other lenders complete the loan process in 60-90 days.
What costs are included in my mortgage loan?
Most mortgage loans cover four parts. These include:
- Principal – the amount you borrowed
- Interest – payments made to the lender for borrowing the money; the longer the life of your loan, the more you will pay toward interest
- Homeowners insurance – a monthly payment made to insure the property against theft, fire, smoke and other hazards
- Property taxes – the annual city and/or county taxes that are assessed to the property, which is then divided by the total number of mortgage payments you will make in a given year
In the early years of your loan, you will primarily pay toward interest. In the final years, your payments will go mostly toward payment of principal.
What paperwork do I need when applying for a mortgage loan?
Having all of the proper paperwork and documentation when you visit the lender will help make the process go far more smoothly and effectively. Items you should bring with you when visiting the lender include:
- Social Security numbers for you and any co-borrower(s)
- Copies of checking and savings account statements for the past 6 months
- Proof of any assets that you may have, such as bonds or stocks
- Recent pay stubs that detail your earnings
- A list of all of your credit accounts and the approximate amount you pay toward them each month
- A list of account numbers and the balances due on any outstanding loans that you may have, such as car loans
- Copies of your income tax statements for the past two years
- The name and address of your employer
How do I know which mortgage loan is right for me?
There are many different types of mortgage loans to select from. The more you know about your options, the better prepared you will be to select the loan that is right for you. There are two primary types of mortgage loans to select from. These include:
- Fixed-rate mortgage – a type of loan where the interest rate remains the same throughout the life of the loan
- Adjustable Rate Mortgage (ARM) – a type of loan where the interest rate and monthly payments may change over the lifetime of the loan
While most people choose fixed-rate mortgages because they always know exactly how much their mortgage payment will be each month, there are certain advantages to ARMs. For example, ARMs typically start with lower monthly payments than fixed-rate mortgages. Also, the initial interest rate on these loans is generally less. On the other hand, the rate and payment could potentially go up as often as once or twice per year. Since the adjustment is tied to a financial index, such as the U.S. Treasury Securities index, you can monitor trends and get a good idea of whether rates are likely to go up or down. Still, you are taking a risk when you choose to go with this type of mortgage loan.
To contact a Dallas first-time homebuyer loan expert, call PrimeLending today: (800) 308-8503.