As we near another spring, the beginning of “home season” also gets closer and closer. For prospective home buyers, it can be an exciting time. But before you start the home buying process, it’s important to gauge how much you know about mortgages.
- True or false: mortgage rates for all mortgage types are set once per day.
- True or false: law requires all lenders to charge the same appraisal and credit report fees.
- True or false: I have to get my mortgage from the same lender that pre-approved me.
- Change: True or False: Just because you are a current customer at a bank, they have to approve you for a loan.
- True or false: when getting a fixed rate mortgage with your spouse, lenders look at each of your scores from the three main reporting bureaus and determine your interest rate from the lowest of the two middle scores.
- True or false: you cannot get a mortgage with less than a 5% down payment. (5% is required; Iowa State Bank can give you an interest credit, but 3% of your own funds is ALWAYS required in a purchase and another 2% can be gifted, so technically you always need 5%.)
- True or False: All mortgages have a maturity of 15, 20 or 30 years?
- True or False: Appraisals have to be done on every type of home loan?
Check the answers below. How well did you do? If you got most of the questions, then congratulations, you have a solid understanding of the mortgage process. If you didn’t get that many questions correct, don’t fret. You now know the answers, and the Iowa State Bank loan officers can also help you with any other questions you have. If you’re ready to apply for a mortgage at Iowa State Bank, follow the link to our easy online mortgage application.
We hope to hear from your soon!
Answers: 1. False, 2. False, 3. False, 4. False, 5. True, 6. True, 7. False, 8. False