There is a lot to consider when purchasing your first home and it may even seem a little overwhelming. But no need to fear! Your Pulte Mortgage Loan Consultant will guide you through the home financing process with ease. Below are five questions you can ask to help get you started on your homebuying journey.
Q: Which mortgage type is best for me and my unique financial situation?
A home is most likely the most expensive purchase you’ll ever make, so it’s important to find a loan that meets your needs and budget. With more than 200 different loan products available to homebuyers, your Loan Consultant will happily help you find the best one for you.
Q: How much money should I have saved for a down-payment?
If you were to ask your grandparents, they might say that you need at least 20% of the home’s purchase price for a down-payment. We hate to break it to them, but that’s old news! These days, there are many loan products that allow for as little as 3.5% down. (If you’re an active military member or a veteran, you may even qualify for 0% down!) This all depends on which mortgage type you and your Loan Consultant decide is best for you.
Q: What should I expect my interest rate to be, and should I consider a fixed or adjustable-rate mortgage?
The biggest difference between a fixed-rate or an adjustable-rate mortgage (ARM) is how your interest will work. A fixed-rate mortgage has an interest rate that will never change during the life of the loan and is generally best for those who are planning on living in their homes long-term without the risk of fluctuating rates. The rate on an ARM will fluctuate depending on the market and may be best for those who would like to enjoy the benefits of an introductory rate. Interest rates are always changing, but don’t worry, your Loan Consultant will be there to guide you!
Q: How does my new home’s construction timeframe impact my loan process?
As the experts of new construction lending, nobody knows the homebuilding processes and timelines better than we do. Visit our website here to gain a better understanding of how we work hand-in-hand with your homebuilder to make your home’s financing as streamline and stress-free as possible.
Q: Will I have to pay private mortgage insurance?
Private mortgage insurance, or PMI, is a temporary monthly insurance payment that is required on some loan types if you choose to put less than 20% down on a home. The good news is, in most cases, once your mortgage principal balance becomes less than 80%, you can request your servicer to drop your PMI!
While PMI is purely for the lender’s benefit, it may be a small price to pay when purchasing a new home. Instead of spending more time renting to save more for a down-payment, you can begin building equity sooner rather than later!
