Question 1

What is the difference between a fixed-rate and an adjustable-rate mortgage?

Accepted Answer

A fixed-rate mortgage maintains the same interest rate throughout the loan term, providing stability. In contrast, an adjustable-rate mortgage (ARM) typically starts with a lower rate but may change over time based on market conditions.

Question 2

What credit score is required to qualify for a mortgage?

Accepted Answer

Lenders typically prefer a credit score of 620 or higher for conventional loans. Government-backed loans like FHA and VA may accept lower scores.

Question 3

Can I refinance my mortgage to lower my monthly payments?

Accepted Answer

Yes, mortgage refinancing can often reduce monthly payments by securing a lower interest rate or extending the loan term.

Question 4

How much down payment do I need to buy a home?

Accepted Answer

The down payment requirement varies but often ranges from 3% to 20% of the home's purchase price. Certain loan programs, such as FHA or VA, may have lower down payment options.

Question 5

What is the mortgage approval process like?

Accepted Answer

The process involves pre-approval, application, document verification, underwriting, and closing. Pre-approval helps determine the loan amount you can afford.

Question 6

What's the difference between pre-qualification and pre-approval for a mortgage?

Accepted Answer

Pre-approval is a more rigorous process involving a comprehensive review of your credit, income, and other financial factors, resulting in a firm commitment from the lender for a specific loan amount.

Eroica Financial Services Keith Krop, NMLS #320270 Eroica Financial Services License: NMLS # 836583

Eroica Financial Services
Keith Krop, NMLS #320270
Eroica Financial Services License: NMLS # 836583