While buying a home is always an exciting experience for first-time buyers, it is a financial decision that requires serious consideration. HSBC Mortgage is here to start you on the journey to acquiring your dream house. Once you’ve decided and are prepared to purchase a property, an HSBC mortgage partner will guide you through the process. The mortgage process is not complicated with the right financial partners. Below is HSBC’s Mortgage Guide for First-time Homebuyers.
Prepare And Get Prequalified
When you are ready and decide to buy a house, your first step is to speak with an HSBC mortgage consultant to prequalify for an HSBC mortgage. This conversation should happen even before you start researching houses for sale.
Your mortgage consultant will determine your credit status based on your financial records. Then, together with the consultant, you can determine a realistic budget and create steps to achieve homeownership. By prequalifying for an HSBC mortgage, you will have peace of mind, knowing what you can afford in advance.
Choosing the Right Mortgage
To secure your dream home, the next step is to choose the right mortgage. There are many different types of mortgages, but which one is the best for you? HSBC can direct customers to the right mortgage according to their individual needs. There are three types of HSBC mortgages:
1. Conforming mortgages
The terms and conditions of conforming mortgages follow the Freddie Mac and Fannie Mae guidelines, which are laid down by the Federal Housing Finance Agency. This mortgage is particularly good for customers with good credit records because of the low-interest rates attached to them.
2. Jumbo mortgages
These are mortgages which are higher than the dollar limit set by Freddie Mac and Fannie Mae. Borrowers benefit from the freedom to go beyond the limitations set by Freddie Mac and Fannie Mae and can obtain a competitive interest rate to finance their new home.
3. Affordable and Regional Mortgages
HSBC design their mortgages for first-time home buyers to be affordable. However, veterans can also opt for it. HSBC offers different affordable and regional mortgage programs to suit different customer needs.
Through the help of HSBC mortgage consultants, you can find the mortgage that will address your personal needs.
Applying for a Mortgage
After choosing a mortgage, HSBC guides its customers step-by-step through the mortgage application process. Once you inform your HSBC consultant of the property location you’ve chosen, the price, and the down payment amount required, you can begin your application process. Important documentation that you will be required to present include:
- Bank statements
- Pay stubs
- Wage and tax statements
The mortgage consultant will provide you with information regarding closing costs and the terms for your loan.
Continuing the HSBC Mortgage Journey
HSBC continues to guide you through your mortgage journey from the application process through the closing of the loan. Below are important documents that you will encounter during the closing stage of the loan.:
This document contains a detailed summary of the terms of the mortgage, monthly payments, and closing costs.
This document is a promise that a borrower will repay the loan. It contains the loan amount, the loan terms, and the action that the lender can take if you fail to pay the expected amount.
Deed of Trust
This document secures the Promissory Note and gives a lender the right to claim the house if you fail to pay as agreed.
Certificate of Occupancy
This document is applicable if the house you are buying is newly constructed. You will need it to move in.
It’s important to read all the above documents carefully and to ask questions when you do not understand.
If you’re a first-time homebuyer, HSBC Mortgage consultants will not only guide you through the mortgage process, they will help you to buy your dream home.
It’s that simple.
Compare Mortgage Providers
Mortgages are a big deal. It is good practice to compare mortgage providers to ensure that you are selecting a partner that is best suited to your needs. One that is in-line with your values and which you feel comfortable to handle your mortgage.
Here are some other mortgage providers we have covered