Frequently Asked Questions When Applying for a Mortgage (Part 2)
Robins Financial Credit Union is dedicated to our mission to be Member Focused, Financial Partners, Community Proud. We empower our members with the financial knowledge and resources they need to make informed decisions and achieve their financial goals.
Applying for a mortgage can seem like a daunting process, especially if you're not sure where to begin. As your trusted financial partner, we’re here to simplify the journey. We know our members often have questions about the requirements, the steps involved, and how to set themselves up for success – and we’re here to help.
In this article, we will dive into the answers to some of the most frequently asked questions with Mortgage Loan Originator, Thomas Stembridge. Whether you’re a first-time homebuyer or just looking to refresh your knowledge, this guide will give you the clarity and confidence you need to start your homeownership journey. Let us help you clear up the confusion and get one step closer to making your dream home a reality.
Q: How do I know if a mortgage is right for me?
Thomas: A mortgage comes down to three main factors: your credit and credit score, your income (specifically how it relates to your debt), and the funds you have at your disposal to use for the home purchase. These three factors will be used to see how much you can qualify for. Ultimately, the decision is a personal one you must make about how much of your monthly income you feel comfortable spending on mortgage payments and the kind of home that you want. As your loan officer, our job is to help guide you on this journey and provide you will all the information we can so that you are able to make informed decisions.
Q: How does my credit score impact my mortgage application?
Thomas: Your credit score is crucial to your mortgage application. First and foremost, in that most every loan product has a minimum credit score. This means that if your score is below the minimum, the underwriting will automatically deny your loan. Besides meeting the minimum score, your credit score will impact you in many other ways. For example, the higher your score is the more likely you are to get access to better interest rates as well as qualify for more funds.
Read our blog about how to get your credit ready for a mortgage.
Q: What is the difference between a fixed-rate and an adjustable-rate mortgage?
Thomas: With a fixed-rate mortgage, once you receive your loan, the mortgage payment (meaning the total of your principal and interest) will never change for the life of the loan. This option allows you to properly plan your budget since you know what to expect each month. An adjustable-rate mortgage generally gives you a lower interest rate to begin with. The rate will change at regular intervals to reflect current market conditions. This means that your interest rate can increase which, in turn, will increase your monthly mortgage payment. It all comes down to whether you want a more stable option that allows you to lock in your interest rate or take advantage of a lower interest rate at the risk that it could increase over time.
Read our blog to learn more about the different types of mortgage loans.
Q: Are there any first-time homebuyer programs or grants I should know about?
Thomas: At Robins Financial Credit Union, we are proud to offer our First-Time Home Buyer Program that offers many competitive advantages. This includes a lower down payment of 3%, and in some cases, a $0 down payment option may be available. The credit union will cover the cost of your credit report fee, appraisal, and offers a lower origination fee saving our borrowers even more money. In addition, Robins Financial partners with Federal Home Loan Bank or FHLB Atlanta to offer down payment assistance based on the borrower’s household income as it compares to the county average. This program can help borrowers who may be otherwise very well qualified by may not have enough funds available.
Applying for a mortgage doesn’t have to be overwhelming. With the right guidance and answers to your questions, you can approach the process with clarity and confidence. At Robins Financial Credit Union, we are committed to supporting you every step of the way.
- Visit our Knowledge Center to find more informational blogs about the home buying process, various mortgage loans, and what you can expect at your mortgage loan closing.
- Visit our website for a step-by-step guide through the Homebuying Process
- Tune into our YouTube channel to watch our Buying a Home series
If you need assistance or have additional questions about applying for a mortgage loan, make an appointment to speak to one of our Mortgage Specialists today!
Read our other blog articles to help you gain the financial knowledge you need to succeed.