Buying a Home: Tips to Know Before You Get the Keys

Buying a home comes with a lot of questions, but understanding the mortgage process can make each step feel more manageable. These quick tips will help explain key terms and valuable information all home buyers need to know.

Mortgage Experts: A mortgage makes homeownership possible for many buyers, and your Ascentra Mortgage Expert is there to guide you every step of the way. They can help you understand what you can realistically afford, compare loan options, and navigate the process from pre-approval to closing.

Pre-qualification vs. Pre-approval: Prequalification is a rough estimate based on basic information, while pre-approval is a more detailed review of your income and finances using official documents. Realtors often require pre-approval and Ascentra only offers pre-approvals.

Mortgage Options: Choosing the right mortgage plays a key role in long-term affordability. Fixed-Rate Mortgages remain the most common option, offering stable payments over 10, 15, or 30 years. Adjustable-Rate Mortgages (ARM) may offer lower initial rates for a set period, though payments can change later based on the economy.

Credit Score: While a score of 620 is preferred, approval is based on multiple factors, including stable, consistent income with no unexplained gaps or reductions. At Ascentra, qualified borrowers receive the best available rate on traditional fixed-rate mortgages, without rate increases tied solely to credit score.

Private Mortgage Insurance (PMI): If your down payment is less than 20% of the total home value, you’ll be required to pay for PMI. PMI protects the lender if the loan goes into foreclosure, not the borrower. In many cases, PMI can be removed once the borrower has built 20% equity in the home.

Down Payment Assistance & Grants: To help make homeownership more attainable, Ascentra offers a $15,000 First‑Time Home Buyers Grant for income‑qualified buyers through the Federal Home Loan Bank of Des Moines (while funds last). These grants can be used toward both down payment and closing costs, helping to reduce the upfront financial burden.

No matter where you are in the homebuying journey, having the right support can make all the difference. Learn more by contacting an Ascentra Mortgage Expert.