3 Burning Questions: Mortgages

The home-buying season is in full swing! And, if you’re in the market for a new place, you’re going to want to keep reading.

Getting a mortgage can be intimidating, especially if you’re new to the process. The mortgage professionals at Mountain America Credit Union want to help. They have put their heads together to answer three frequently asked questions. Here we go:

Question #1: Can I still get a mortgage if I don’t have 20% for my down payment?

Yes! This benchmark has been around for decades. However, these days, the average down payment is around 7% and there are plenty of mortgage options that require less than 20%—some don’t require a down payment at all.

The best advice is to make an appointment with a mortgage professional to discuss which programs could work for your personal situation and what the terms are. FHA, VA and First Time Home Buyer mortgages are just a few, great possibilities that require a down payment of less than 4%.

Question #2: We have found our dream home and are ready to move forward! How much will we pay in closing costs and how fast can we finalize our mortgage?

Closing costs vary based on the size of your loan and the specific tax laws in your area. Including fees and funds needed to set up an escrow account, however, they are usually around 3% of the property’s purchase price.

The typical closing period is 30 days. This can vary depending on the specific situation.

Another great idea? Get an instant quote with our free tool!

Question #3: What documentation is needed to get preapproved for a mortgage?

Most mortgages require verification of income, employment, credit, assets and debts. Your lender may require additional documentation if you’re self-employed or you receive income from several sources.

Here’s a list of some of the information you may need to provide:

• W-2 or other income forms

• Pay stubs

• Bank/investment statements

• Tax returns

• Identification and Social Security Number

For a more complete list, click here.