Whether you’re a first-time homebuyer or you are simply relocating, a mortgage is often a necessity. But should you opt for a fixed-rate or adjustable-rate mortgage (ARM)? How important is pre-qualification? And what are the actual financial steps you need to take on your journey toward homeownership?
At Whitley Mortgage, we have decades of experience helping clients throughout Charlotte, North Carolina demystify the mortgage process and apply for the loans they need to buy the home they love.
One of the first things you’ll need to decide is what type of mortgage and interest rate is right for you. Charlotte, NC mortgages fall into two primary categories, conventional mortgages and government insured mortgages. A conventional mortgage is one that is not insured by any government agency, while government insured loans are guaranteed by the Federal Housing Administration (FHA) or another government body. Both of these loans types can carry either a fixed or adjustable interest rate.
A fixed-rate home mortgage is a good option for people who want a predictable monthly payment. With fixed-rate loans, your interest stays at the same percentage for the duration of your payments, so each month’s payment will be exactly the same as the last. That said, sometimes these percentages can be higher, leaving you ultimately with a larger cost over time.
Adjustable-rate mortgages are loans whose interest rates rise and fall to keep them in line with inflation. These can seem very appealing, as sometimes the rates start lower; that said, adjustable-rate mortgages can be unpredictable due to market fluctuations.
Pre-qualification and pre-approval for your home mortgage both involve you providing preliminary information to the lending agency for review. If you pre-qualify, the lender looks at your finances but not your credit to determine what size of loan you might be eligible for. This can be helpful in determining your budget and selecting a home that falls within it.
For pre-approval, the lending agency reviews your finances as well as your credit. There is generally a fee associated with this process, and it takes a bit longer for the results to come back; however, when you are pre-approved you have an assurance that you will be lent the amount that comes back. It is also possible, though not guaranteed, to lock in an interest rate at this point.
When considering getting a mortgage for a Charlotte, NC home, your best course of action is to get a knowledgeable professional on your side. Beyond the simpler things like interest rates and qualifications lie many complex components including escrow, pre-payments, APR, points, and closing costs. These high-dollar loans can be difficult to navigate, so working with a mortgage company, a lender, a broker, or a banker to secure your loan is in your best interest. The finance professionals at Whitley Mortgage have advised on and secured home mortgage loans throughout Charlotte and the surrounding areas for decades, giving us the experience to help you purchase the home of your dreams.
If you are considering applying for a mortgage in Charlotte, North Carolina, call Whitley Mortgage today. We are North Carolina’s most trusted mortgage company, working with first-time homebuyers and seasoned homeowners alike throughout Charlotte, NC to assist them in qualifying for for the home of their dreams.