Buying a home can become a tedious and difficult process to complete if you don’t understand the basics of purchasing a home and what should be rewarding could become your biggest nightmare.

Below you will find Frequently Asked Questions (FAQ’s) regarding the process of buying your first home. HispanicLending.com provides this information because we want to help you through the maze of the home buying process as simply as possible. Although we believe our information is comprehensive there may be a time when all of your questions are not answered below.

If you have any specific questions about how to buy a home that are not answered below please email them to homequestions@HispanicLending.com or refer to the links below for more information.

What’s the first thing I need to do to buy a home?
The first thing you need to do is to get approved for a mortgage . Many individuals will start shopping for home first and then see how much money they can borrow however, it is better to find out how much you can afford before you start shopping. This will reduce your chances of being disappointed that you find a house you like but cannot afford.

How do I do that?
Any company that will loan you money to buy a house with will require information about how much money you make, your present credit status (do you have any outstanding debt like a car loan or credit card payments) and your legal status such as a Social Security Card , Individual Tax Identification Number or work Visa and the amount of down payment you can afford. In most cases the mortgage company will require your last two years of your Federal tax returns , current payroll information from your employer such as a pay stub and your social security number. If you are self-employed you may be required to present profit and loss statements, your last two years of Federal Tax Returns and your social security number.

What does the mortgage company do with all of this information?
The mortgage company needs the information to ascertain how much of money they will loan you to buy your house. They may verify your employment status by contacting your employer and will check your credit status by providing your social security number to a Credit Bureau to verify your FICO score .

How do I know how much I can borrow for a new home?
Once the mortgage company has completed their inquiries they will inform you how much money they will loan you to purchase your new home. The mortgage company will tell you how much you have pre-qualified for. In other words, the mortgage company will say you have pre-qualified for certain amount of loan dollars to purchase your house with such as $100,000 or $150,000 or $175,000. Once you have received your pre-qualification amount then you can start shopping for house in that price range.

There are so many different types of mortgages, how do I know what is best?
You should discuss your options with a professional loan officer. At HispanicLending.com our preferred mortgage company, MortgageSelect.com will help explain all of the different types of mortgages that are available for you and they recommend what they believe is best for your budget.

How much will my mortgage payment be?
Your mortgage payment varies by how much down payment you apply to the total loan amount, the interest rate , your local taxes , your home insurance payment , the term of your loan and your closing costs . See the example below to understand how much your estimated mortgage payment would be.

Let’s say the price of your new home is $150,00 and you have been quoted a 6% interest rate for a term of 30 years and you have a $10,000 down payment.

Price of your new home Estimated closing costs Less down payment Amount of loan (mortgage)	$150,000 $ 2,500 $ 10,000 $142,750
Payment of loan at 6% for 30 years Annual property taxes $480/12 Home Owners Insurance $360/12 Estimated total monthly payment	$ 856 $ 40 $ 30 $ 926*

*This is number is for illustration purposes only.

How much do I need for down payment?
The simple rule is the more down payment the lower your monthly mortgage payment will be and the lower interest rate will be.

What if I don’t have enough for a down payment, can I still get a mortgage?
Maybe, you may qualify for down payment assistance and that will depend on your annual income. You may qualify for state, county or local down payment assistance. If you need down payment assistance please send us an email at downpayment@HispanicLending.com. One of our friendly customer service representatives will contact you and provide information about down payment assistance availability.

I was told that I have stated income what is that?
Stated income or no income verification means you cannot prove how much money you make most likely you are self employed.

Can I get a mortgage with only stated income?
Yes, if you meet the requirements. Mortgage companies look for a minimum of 2 years of self employment history, information from your accountant, proof of business licenses or even information from individuals that can provide information about the existence of your business.

What if I don’t have a Social Security number can I still get a mortgage?
The good news is you may be able to purchase a home even without Social Security number if you have a Individual Tax Identification Number (ITIN) or meet the requirements to apply for one. You may also qualify for a mortgage if you are in possession of valid Visa . Please keep in mind that you still must have the income required to meet the mortgage loan requirements.

I have heard you can buy a Social Security Card is that legal?
Absolutely not – Social Security Cards are provided free of charge by the United States government to US citizens or lawful alien status. To apply for a Social Security number please visit Social Security Online by clicking on this link http://www.ssa.gov/online/ss-5.html. If you are tempted to purchase an illegal Social Security number to help buy your home please remember there are strict penalties imposed for the illegal use of Social Security Cards.

How do I apply for a Individual Tax Identification Number?
Although the Individual Tax Identification Number is provided by the Internal Revenue Service of the United States Government, HispanicLending.com can you help you with the process. Just call HispanicLending.com at 888-774-6788 and tell the customer service representative that you would like to apply for an Individual Tax Identification Number. Your HispanicLending.com customer service representative will ask for some basic information and within a short time you will be contacted by HispanicLending.com preferred accounting firm Owen Lyon & Associates. It is all very easy and only requires one phone call.

Why are there so many interest rates?
Interest rates are based on many different variables including past credit history, down payment, term of loan, employment status, FICO score, etc. To make sure you get a good interest rate is maintain a good credit rating by paying your bills on time on a regular basis.

I pay all my bills with cash can I still get a home loan?
Maybe, if you can provide a list of companies that you have paid cash for their services including; utilities such as electric, gas, water, telephone; car loans, apartment rent, cell phone and any other payments you’ve made on a regular basis. HispanicLending.com will work with our preferred mortgage provider, MortgageSelect.com in your application for a home loan. Please be advised you will still have meet income, employment and legal status requirements before a loan may be secured.

I have had some past credit problems, can I still apply for a mortgage loan?
Maybe, if you are having trouble qualifying for a mortgage because of past credit problems HispanicLending.com can help. Credit Care Corp, HispanicLending.com preferred credit restoration company offers credit repair and debt negotiation. One simple phone call to HispanicLending.com at 888-774-6788 can help you on your way to a better credit report and making those first steps to help you qualify for a mortgage. Or if you prefer sent us an email at credithelp@HispanicLending.com and you will soon be contacted by one our friendly customer service representatives.

I’m still confused about how to buy a home can you help me further?
Yes, just call HispanicLending.com at our toll free number of 888-774-6788 or email us at homequestions@HispanicLending.com and a friendly customer service representative will help you with your questions.

Other great resources for home buying information can be found by following the links below.

HomePath (this should be a link to the website below) from Fannie Mae.
http://www.fanniemae.com/homebuyers/homepath/index.jhtml?p=Homepath

Buying a Home from U.S. Department of Housing and Urban Development.
http://www.hud.gov/buying/index.cfm

Home Buyer’s Guide from MortgageSelect.com – HispanicLending.com preferred mortgage provider.
http://www.mortgageselect.com/hbguide.asp?referrer=0

Is Homeownership Right for you? from Freddie Mac.
http://www.freddiemac.com/corporate/buyown/english/preparing/right_for_you/