Buying a home is a rewarding but difficult process. There are going to be many new terms for first-time buyers to learn and people to meet before they even begin to get the paperwork in order. Here at Sky Financial, we are here to help you every step of the way so that you can get the home that you’ve always dreamed of. These are the most common mortgage questions that first-time buyers ask us.
How much does my credit score matter?
Any time you go for a loan from a financial institution, especially one of this magnitude, your credit score is going to be taken into account. That doesn’t mean that it will always bear heavily on the outcome, though. We know that sometimes life happens, mistakes are made, or accidents occur that can heavily affect your score. That’s why we are a common sense lender that takes everything into account at present. It does matter, but it doesn’t have to be everything. We are a flexible institution that can work with a wide range of clients.
Why is buying better than renting?
Renting a home comes with a lot of advantages that might suit you depending on your situation like flexibility, short-term commitment, and no home maintenance responsibilities, but once you reach a certain point in your life, buying becomes the much better option. When you pay rent, you are not investing in your future. With buying, you may make larger payments monthly, but you are also investing into something of value. Every dollar you put toward your home is a dollar or more of equity that you build in that property. The home will be all your own, and you will get great tax benefits to boot!
How big does the down payment have to be?
This is going to depend on a lot of different factors, and recent legislation has changed the numbers greatly; however, there are some concrete things that we can work with when figuring out your down payment. For example, if you want a conventional mortgage, then you will have to put down about 20% of the total value. Contrarily, if you want a high-ratio mortgage, one that is insured by a third party, then you can put down less than 20%. The minimum down payment, however, is 5%.
Buying a home is a major step in a person’s life, and asking questions is the only way that you are going to make sure that you get it right. There is no shame in wanting to know everything about the major purchase you are about to make. These are the most common questions that we get here at Sky Financial from first-time buyers. Don’t hesitate to ask our professionals anything that you want.
