How to find the best mortgage lenders in NC for first-time buyers

It can be confusing to buy your first home. There are a lot of hoops to jump through that are meant to determine if you can handle the financial burden of the home as well as protect the lender. Because the process for buying a house is so different from most other things in life, it’s important that you work with the best mortgage lenders in NC for first-time home buyers. At Mortgages By Jill, we can help you make informed decisions when choosing a lender and buying your home. To get started, we’ve included six questions you can ask to make sure you’re working with the right people.

What kind of credit score do I need to get a mortgage?

The simple answer to this question is that it depends on several factors. These include the type of loan you’re getting, how much money you want to put down, and how much you’re willing to pay in interest. The better the credit score you have, the better your chances of getting a low interest rate. So, if you feel like your credit score could use some work before buying a home, it’s probably not a bad idea to pay off some debts before you look to buy.

What interest rate can I get?

It’s not uncommon for buyers to get interest rates that are going to be around 3.0%. The final rate that you get from your lender will depend on the final property value, the amount of the loan you apply for, the term of the loan, and your credit score. We can work together to find a loan that works best for your budget and meets the needs of the home you plan to buy.

Do you offer a mortgage rate lock?

A mortgage rate lock is an important part of buying a home because it ensures that the rate you were given at the time you started closing on your house won’t change. For instance, if you started buying a home today and were offered a 3.05% interest rate on the loan but it takes 60 days to close on the loan, you could see an increase in your rate to 3.25%. While this feels like an insignificant increase now, you could end up paying hundreds of dollars more in your loan every year. Locking your mortgage rate is a great way to make sure that you get the rate you were initially offered.

Can you do prequalification or preapproval?

When you’re shopping for a home, you can quickly narrow your search by getting a prequalification or preapproval. Doing prequalifications and preapprovals sound like they’re the same process but they are somewhat different. The principle behind them is to make sure that you do qualify for the cost of a home you’re looking at buying, but the processes are slightly different. A prequalification is much less formal and the lender will simply ask for financial information to provide you with an amount you qualify for. Preapprovals require official documentation of W-2s, bank statements, tax returns, and more to provide you with a more accurate number.

How much of a down payment do I need?

Whether or not you need a down payment depends entirely on the type of loan you’re getting and the size of the loan you’re applying for. Many lenders will require some type of down payment as evidence that you’re serious about buying the home. This means that you have a significant amount of money invested and are considered less likely to default on the loan. A 10% down payment is not uncommon but 20% can improve your chances of getting approved for a loan and even help you get a lower interest rate.

Reach out to speak with a lender

If you’re looking for the best mortgage lenders in NC for first-time buyers, get in touch with us at Mortgages By Jill. Our team can help you get started buying your first home and securing a mortgage. Give us a call at 336-740-9098 or send a message with your inquiry. We look forward to being a part of your home-buying experience.