Interview by Jenny Lynn Davis | Image by Ryan McGill
Buying a home can feel equal parts exciting and intimidating, especially in a market shaped by changing interest rates, evolving loan programs, and widespread misconceptions about what it really takes to qualify.
To help demystify the process, The Walker Leader spoke with Laura Hiott, president of Hiott Financial Corporation(HFC), for some practical advice designed to empower local buyers to move forward with confidence.
WL: What are the most important steps someone should take before beginning the homebuying process?
LH: Contact a local mortgage professional! Getting pre-approved should be the FIRST step in a homebuyer’s journey. Another important step is finding a real estate agent that you trust. Your agent is your advocate and will make sure you get the best deal possible.
WL: What’s the biggest misconception you see among first-time homebuyers about qualifying for a mortgage?
LH: A lot of first-time homebuyers think that their credit score must be 700 or higher and they need a 20% down payment. This isn’t true! As an independent mortgage brokerage, we shop multiple lenders and loan programs to find the best fit for our buyers. A buyer can qualify for an FHA loan with as little as 3.5% down and a lower FICO score. We also have 100% financing options. There are many loan programs available for a wide range of buyers.
WL: How does someone determine how much house they can truly afford versus what they’re approved for?
LH: We take affordability very seriously at HFC. We do not want our clients to struggle to pay their mortgage. We have certain limitations based on a buyer’s monthly income to calculate how much house they can afford. We also ask our clients what monthly payment amount is in their comfort zone. Every client is different, so we tailor advice for each one to ensure a happy homeowner.
WL: What simple credit-building habits can people start using today to prepare for a future home purchase?
LH: Some credit-building tips from HFC are paying on time, keeping credit card balances low, not overextending your budget, and starting your credit as soon as possible. If you need to build your credit, we recommend a small credit card or a small unsecured loan from your local bank. If you have more in-depth questions regarding credit, we are always happy to help!
WL: How can buyers navigate fluctuating interest rates without feeling overwhelmed or discouraged?
LH: Rates will always fluctuate; however, you have some control over your rate. Your credit score, down payment, and loan term all affect your interest rate. Interest rates can be intimidating, but rates are not always the most important part of a loan to focus on. Mortgage insurance, taxes, and homeowners’ insurance all affect your monthly mortgage payment. In some cases, a loan with a higher rate will actually have a lower monthly payment. So don’t let those higher rates scare you away from your homeownership dreams!
WL: What are the key benefits of working with a local mortgage professional rather than an online lender?
LH: We consistently beat large online lenders on rates and fees. You aren’t just a number to a local lender. The locals are also more familiar with the area you are buying in, and you can meet in person to discuss the process. As an independent brokerage, we have access to many more loan programs and will take the time to find the best fit for our clients.
WL: What’s one thing you wish every client knew before applying for a loan?
LH: Don’t be afraid to ask questions! We are here to help you. A simple 10-minute conversation with us can help you feel more comfortable with the homebuying process.
