Frequently Asked Questions regarding Mortgages
Call Prime Mortgage Lending of West Asheville for more answers to mortgage questions
Scan through the list below or search for a question similar to the one you have. If you don’t understand a term, check the Glossary. If you can’t find the answer you’re seeking on this Frequently Asked Questions page, call Zack at 828-242-4780 or send him your question. He’ll get an answer back to you.
Is now a good time to buy a house?
The answer to this question constantly changes. It’s based not just on the market and location, but also on your unique situation. Before you decide if you’re ready to buy a house, ask yourself these questions:
• Have you saved money toward a down payment?
• Are you a veteran or eligible for other assistance?
• Is your income stable and your credit score high enough?
• Do you understand the responsibilities that come with home ownership?
Do I need a 20 percent down payment?
This is one of the most common mortgage questions. While banks often require a significant down payment when applying for a mortgage, certain types of loans and specific government programs can reduce the amount you need (even to zero dollars down), especially if you’re a first time homebuyer. However, having the down payment can ensure good terms for your mortgage loan. Talk to an independent mortgage lender before starting to look for a house.
How can I compare one mortgage loan to another? What should I look for?
You’ll find many different types of mortgage loans, especially at an independent mortgage lender like Prime, but most have the same basic components. To decide between loans, compare these factors:
• How much you are borrowing (in other words, the size of the loan)
• How long you have to repay the loan (the term of the loan)
• How much interest you’ll pay (the interest rate or Annual Percentage Rate)
• Whether the interest can change over the life of the loan (is it fixed or adjustable)
• Whether you have to pay for discount points
• How much you have to pay for closing costs and when you have to pay them
Do I have to work at the same job for two years before buying a house?
Mortgage questions like this one are based on outdated assumptions. While it used to be standard procedure for mortgage lenders to require two years of employment, it’s not always the case anymore. Lenders still want to verify a stable income, but there are other factors to review, such as your debt-to-income ratio. Compare the requirements of your bank’s mortgage department with an independent mortgage lender.
How do I find out how much I can borrow?
For a quick estimate, check out our Mortgage Calculator. It gives you a rough idea how much your mortgage payments will be for a specific amount that you borrow. You enter the cost of the house, an interest rate and the life of the loan. That assumes you know or can find these amounts. For a better understanding of how much you can borrow, contact Zack Adam of Prime Mortgage Lending of West Asheville. He can get you pre-qualified or pre-approved for a loan, so you’ll have a better idea how much house you can afford.
What’s the difference between getting pre-qualified and getting pre-approved?
In general, pre-qualification is a nonbinding estimate of how much you can borrow and pre-approval determines exactly how much the lender is willing to loan you. For more information, read the Get Pre-Qualified page.
Are there other costs besides the basic mortgage that I’ll have to budget for?
This important question often gets overlooked. You do have other costs when buying a house. Mortgage lenders all require that you carry adequate homeowners insurance. And of course, you need to determine how much property tax you will owe, which usually is paid monthly with your mortgage payment.
Is it better to get a fixed-rate mortgage or an adjustable-rate mortgage?
The most common mortgages have a set duration (say, 30 years) and a fixed rate (an interest rate that stays the same for the life of the loan). But before you play follow the leader, sit down with an independent mortgage lender like Zack Adam. The right mortgage loan for you depends on your financial resources and your ability to repay the loan faster. For some people, an adjustable-rate mortgage (ARM) can save money, but they are not for everyone. Zack will work with you to perfectly match your needs to the right mortgage.
What’s the difference between a loan’s APR and its interest rate?
The APR, which stands for the Annual Percentage Rate, refers to the total yearly cost to you, which encompasses the interest and fees you pay over the life of the loan. The interest rate is simply the interest percentage on the principal amount of money you are borrowing. So while the interest rate may seem enticing, the APR — what you actually pay — is always going to be more.
What do I need to apply for a mortgage loan?
You’ll have to supply financial documents that show your income, debts and past payment history. Which specific paperwork you will need to provide depends on many factors. Check out the full list on the Document Checklist page, but you likely won’t need everything. Speak to an independent mortgage lender for the documents that you will need for your specific case.
Don't Be Shy
Be sure to check the Glossary for definitions of mortgage terms and concepts. Did we miss a question on our Frequently Asked Questions regarding Mortgages page? Call Zack at 828-242-4780 or send him a message if you have mortgage questions not listed here. We could add your question to our Frequently Asked Questions regarding Mortgages.
Zack is happy to help get you into your new home.
“Zack, thank you very much for all your hard work you put into helping me! Zack worked with me for 18 months. His patience, knowledge, customer service and follow up is exceptional. I highly recommend Zack for all of your mortgage needs.”
“Zack made the process of getting a mortgage very smooth and straightforward. There are inherently a lot of steps in the process (forms to be filled out, etc.), but Zack explained everything clearly, outlined our various options, and in the end found a loan that fit our needs at a very good interest rate. Almost all the documents could be signed electronically, which was a great help, as we were buying a house in Asheville from out of state. We would be happy to work with him again.”
“After a not-so-pleasant experience with a traditional bank, Zachery Adam was a comfort. He clarified the process, worked efficiently, and was always forthcoming with honest answers to our questions. I definitely recommend him!”