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Questions You Need to Ask When Applying for a Mortgage

Buying a home can be a complicated process. According to a recent study, 44% ofparticipants said they wouldn’t know where to beginthe process! Securing a mortgagein Tennessee intimidates many potential homeowners, especially if it is their first timebuying property. One of the first steps in the process is finding the right mortgage inTennessee to suit your needs. With that in mind, here are a few questions you shouldask when choosing who to work with on securing a home loan.

1 - How Does Pre-Approval Work For Mortgage Loans?

One of the first steps when planning to buy a home is getting pre-approved for a homeloan. There are many reasons why this is important. Firstly, it will provide you with theamount you can qualify for, ultimately informing your house hunting by letting you knowhow much you can realistically afford to spend buying a home. It is also an excellentindicator for sellers that you are a serious buyer, not just a window shopper! Differentlenders will be looking for other things, but as a general guide, some of the things thatmight come under scrutiny during the pre-approval process include:

• Examining Your Debt to Income Ratio
• Looking at your Loan to Value Rati
• Credit History
• FICO Score
• Income & Employment History

2 - Ask About Their Rates & Fees

When seeking a mortgage in Tennessee, you are likely to come across various termsyou might not have heard of before! Don’t be afraid to ask for an explanation, especiallyregarding additional fees and interest rates. It is vital for you to understand preciselywhat you will be paying and what is included in that payment. Lenders may charge forvarious things throughout the home loan application process, so you need to know whatyou are paying for. Ask for a complete breakdown of fees and rates. This may includethings like origination fees.

3 - What Are Your Options For Down Payments?

In most cases, when applying for a mortgage in Tennessee, you will need to put a downpayment on your new home. This lump sum is a percentage of the total cost of theproperty you are buying. The specific percentage is going to depend on your loan. Askyour potential lenders how much you need to put down as a down payment and if thatsum is negotiable. A 20% down payment is fairly standard, but many types of loansallow a smaller down payment, and many lenders can also offer a down paymentassistance program. When you work with Flat Branch Home Loans, The Erica KelleyGroup, we will discuss your situation and help you find a mortgage in Tennessee thatsuits your needs, including whatever down payment you can afford.

4 - Ask About Different Loan Types

When you are ready to choose a mortgage in Tennessee, you should research thevarious types of loans available to you. This will help you find the option that best suitsyour circumstances. At Flat Branch Home Loans, The Erica Kelley Group, we arepassionate about finding the loan that will work for you. Some of the loans that could beavailable to you include:

• Jumbo
• Conventional
• First Time Homebuyer
• FHA Government Loan
• USDA Government Loan
• VA Government Loan

5 - Is There a Prepayment Penalty?

It is important to consider what might happen in the future when deciding on amortgage in Tennessee. For example, you may find y ourself in a position to pay off yourmortgage early. It is important to know if this will result in any additional fees. Thesecan come into play if you decide to sell the property, refinance it, or pay down the loanwith a lump sum. Be sure to ask what would trigger one of these prepayment penaltiesand how much it will likely cost. This allows you to make an informed decision beforetying yourself into a long-term home loan.

These are just a few questions you might like to ask while shopping around for the besthome loan to fit y our needs. This is a pretty significant transaction, so you shouldn’t beafraid to ask questions. It is essential that you feel comfortable with your decision.Working with someone you trust can make a huge difference. At Flat Branch HomeLoans, The Erica Kelley Group, we take a human-centered approach to mortgages in Tennessee. We put relationships ahead of transactions and look for the right home loanto suit your life and your family.

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Human-Centred Mortgage Loans

Whether you are a Veteran, a first-time home buyer, looking to refinance, or everything in between, Flat Branch Home Loans, The Erica Kelley Group specializes in finding the right home mortgage for you. It is our honor to help you acquire something that is "yours."

Call 615-423-3095 or email ekelley@fbhl.com