National City Mortgage offers flexible qualifying guidelines, low and no down payment options and experts to help you.  Not all our programs are available on-line so we encourage you to contact us at (877) 508-3339 Monday-Friday, 9:00 a.m.-6:00 p.m. EST to discuss our entire product line for first time homebuyers. 

Should I buy a home or rent one?
Answer:  Because you can build equity in a home that you own, it’s usually a great idea to purchase a home.  Plus you'll love the feeling of having something that's all yours. But there's more to owning a home than the satisfaction of owning. You can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes** too. Interest will be most of your monthly payment for a large part of your mortgage term which provides you with an attractive deduction.  Plus you're also allowed to deduct the property taxes you pay as a homeowner. If you rent, you write your monthly rent check and it's gone with nothing to show for it. Another thing to consider is that property values usually increase thus giving you a more valuable asset through the years you have your home.
**We encourage you to consult a tax advisor regarding the deductibility of mortgage interest. 

I don't have much for a down-payment. Can I become a homebuyer?
Answer:  National City Mortgage has many program options for you to consider today.  It’s important for you to discuss your personal situation with a loan professional.  He or she will be able to direct you to the best programs for your particular situation.  

Should I use a real estate broker?
Answer: Using a real estate broker is a very good idea and a good source for one is referrals from your family, friends or work associates. All the details involved in home buying, particularly the financial ones, can be stressful and complicated. A good real estate professional coupled with a knowledgeable mortgage lender can guide you through the entire process and make the experience much easier. A real estate broker will be well-acquainted with all the important things you'll want to know about a certain neighborhood you may be considering plus the quality of schools, safety of the neighborhood, traffic volume, proximity to work and more. He or she will help you sort out the homes you'll want to see to avoid wasting time.  When it's time to make an offer on a home, the broker can point out ways to structure your deal to save you money.

How much money will I have to come up with to buy a home?
Answer: The answer to this depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three things: earnest money – which is the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house. When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies.

The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 5-20% of the purchase price. Other programs require as little as 3% down payment and even some, require no down payment at all.  Contact a loan professional to discuss the options available to you.  

Closing costs, which you will pay at the time of settlement, can average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs.

How do I know if I can get a loan?
Answer: Use our simple mortgage calculators on this website to see how much mortgage you can afford.  Better yet, a good idea is to get pre-approved for a loan which you can do easily on this website. That means you can get your financing approved before you actually start shopping for a home. Then you'll know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams.


In addition to the mortgage payment, what other costs do I need to consider?
Answer: You’ll have additional monthly utility bills on your home which includes things like, heat, gas and/or electric and water bills. If your utilities have been covered in your rent, this may be new for you. Your real estate broker will be able to help you get information from the seller on how much utilities cost over a year so you can get an accurate monthly average for your budget planning. In addition, you might have homeowner association or condo association dues.  

So what will my mortgage cover?
Answer: Most loans have 4 parts: principal: the repayment of the amount you actually borrowed; interest: payment to the lender for the money you've borrowed; homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year. Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you'll pay far more in interest than you will in principal - sometimes two or three times more! Because of the way loans are structured, in the first years you'll be paying mostly interest in your monthly payments. In the final years, you'll be paying mostly principal.

I know there are lots of types of mortgages - how do I know which one is best for me?
Answer:  National City Mortgage has many types of mortgages. Most first time homebuyers are more comfortable using a fixed-rate mortgage. In a fixed rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage principal and interest payment will be, and you can plan for it. Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage. But your rate and payment can change either up or down, generally once a year. The adjustment is tied to a financial index, such as the U.S. Treasury Securities index. The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower.  It’s important to discuss program options with a loan professional. 

When I find the home I want, how much should I offer?
Answer:  Your real estate broker can help you with this important step. But there are several things you should consider: 1) Is the asking price in line with prices of similar homes in the area? 2) Is the home in good condition or will you have to spend a substantial amount of money making it the way you want it?  3) How long has the home been on the market? If it's been for sale for awhile, the seller may be more eager to accept a lower offer. 4) How much mortgage will be required? Make sure you really can afford whatever offer you make (again we suggest you get a pre-approval from your lender prior to house hunting). 5) How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house.

What if my offer is rejected?
Answer: This happens a lot so don’t panic and don't let it stop you! Now you begin negotiating. Your broker will help you. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that wouldn't normally be expected. Often, negotiations on a price go back and forth several times before a deal is made. Our caution here is that you don’t get so hung up in the negotiations that you end up committing yourself to something you can’t afford.

So what happens at closing?
Answer: Typically, in most states, you'll sit at a table with your real estate agent (if you have one), the agent for the seller, the sellers, and a closing agent. The closing agent will have papers for you and the seller to sign. While he or she will give you a basic explanation of each paper, we encourage you to take the time to read each one and/or consult with your agent or attorney to make sure you know exactly what you're signing. After all, this is a large obligation you are committing to pay for a many years! Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a "good faith estimate" of how much cash you'll have to supply at closing, and a list of documents you'll need at closing. If you don't get those items, be sure to call your lender BEFORE you go to closing. Don't hesitate to ask questions.