If you have questions about the lending process, today’s Q&A session with mortgage expert Jason Zimmer may help clear things up.

Obtaining a loan is one of the most significant steps in the home purchase process, so, as you can imagine, buyers faced with this task tend to have a lot of questions. To help answer some of these common queries, I recently met with our team’s preferred lender, Jason Zimmer of Parlay Mortgage, for a Q&A session regarding this crucial subject. 

Today, I’ll be sharing a quick summary of what we covered in that conversation: 

“How much do I need to put down?”

Many people assume you need to put 20% down to purchase a home, but this isn’t the case. Certain down payment programs allow you to put 5%, 3.5%, or even 0% down. 

“What are the requirements for getting a loan?”

Different loan programs will carry different requirements. In general, though, your credit score, income, and employment history will play a major role in what you can qualify for. FHA loans will be more forgiving with what kind of credit score you can obtain a loan with, while conventional loan programs will be slightly stricter. 

“What will my monthly payment be like?”

Online payment calculators may be convenient, but they’re not always accurate. Usually, the figure you see on such websites will only include your principal and interest. The only accurate way to determine what your monthly payments will actually look like is to review your circumstances with a professional lender. The amount you put down, your credit score, property taxes, and the current interest rate will all play a role in shaping your monthly payment. Homeowners insurance, too, should be accounted for as part of this expense.

“The only accurate way to determine what your monthly payments will actually look like is to review your circumstances with a professional lender.”

“Where are interest rates headed?”

Interest rates are going to rise. The question is where they will stop. Of course, this doesn’t mean they will rise forever. Although, if you’re looking in to an FHA loan, their rates can be more forgiving if your credit score isn’t the best. FHA loans typically don’t raise as much as conventional loans do in respect to credit scores. And in addition to that point, it’s also important to realize that the Fed’s decision to raise rates isn’t specifically in regards to 30-year fixed mortgages. In fact, there are even instances when a rise in the federal funds rate may lead to a drop in 30-year mortgage rates. 

If you would like to speak about these or any other questions in greater detail with Jason, feel free to give him a call at (815) 838-6613 or send him an email at jzimmer@parlaymortgage.com. If you’d like to get instant access to a personlized mortgage calculate, you can download his app here.

And, as always, if you would like more information about what we discussed today or about another real estate related topic, please reach out to my team or me. We look forward to hearing from you soon.