Your Mortgage Questions Answered: Key Insights for Homebuyers

By Julio Cobian, Mortgage Advisor in Chico, CA

Buying a home is exciting, but it can also feel overwhelming if you don’t have the right answers to your mortgage questions. Whether you’re a first-time homebuyer or moving into your next property, here are some of the most common mortgage questions I hear—and the answers that will help you feel confident.

1. How much do I need for a down payment?

You don’t always need 20%. Many programs allow as little as 3% down, and down payment assistance in California can help qualified buyers. The right option depends on your budget and long-term goals.

2. What’s the difference between pre-qualification and pre-approval?

• Pre-qualification is a quick estimate based on self-reported info.

• Pre-approval goes deeper—your credit, income, and assets are verified.

Sellers see pre-approvals as stronger, which can make you more competitive in a market like Chico.

3. How do mortgage rates affect my payment?

Even a small change in interest rates can make a big difference. For example, a quarter-point drop may save you hundreds over the life of your loan. That’s why working with a mortgage advisor who tracks the market daily is so important.

4. What type of mortgage loan is best for me?

It depends:

• Conventional loans: Great for strong credit.

• FHA loans: Flexible for lower scores.

• VA loans: Powerful benefits for veterans.

• ITIN programs: Designed for those without a Social Security number.

A good lender customizes your loan to fit your needs, not the other way around.

5. How can I make the process smoother?

• Gather pay stubs, tax returns, and bank statements early.

• Avoid new credit accounts or big purchases during the process.

• Stay in touch with your mortgage advisor—we’re here to guide you.

Final Thoughts

The mortgage process doesn’t have to be stressful. With the right guidance, you can move forward with clarity and confidence. My goal as a mortgage lender in Chico, CA is to help every client find the loan that works best—whether that’s lowering payments, using down payment assistance, or securing the right first-time homebuyer program.

📲 DM me today or call to set up a personalized consultation.