Ask yourself how much mortgage and down payment you can really afford. We can provide you with mortgage calculators that will help you determine what your regular payments will likely be, based on your projected down payment, the loan principal, and the interest rate, etc.
Sometimes lenders will qualify you for the maximum they are willing to lend, which may be more than you can truly afford. Be sure to factor in all related taxes, insurance, improvements, homeowner fees, and all other potential costs into the equations.
Direct lenders have money and make the decisions, but have a limited number of in-house products to offer
Brokers are intermediaries who charge a fee, and can provide you with loan options from many sources, which can often save you money overall
Be sure to consult your S&D Real Estate Agent as they often have beneficial connections.
Fixed- Rate Mortgages protect you against the risk of rising interests rates, and their stability can also make it easier for you to plan and budget your short and long-term expenses.
Fixed-Rate Mortgages also offer a short-term plan and a long-term plan. Short-term mortgages, like a 15-year, have lower rates than a 30-year. The shorter the term and lower rate mean that you will pay less interest over the life of the loan, although your monthly payments will generally be higher.
Adjustable- Rate Mortgages have an interest rate that adjusts up or down depending on the economic trends. They are commonly based on the U.S. Treasury index. Lenders usually add 2-4% to the index rate to come up with their Adjustable- Rate Mortgage.
Adjustable-Rate Mortgages are initially lower than the Fixed-Rate by 0.25-2+ points. This rate will periodically adjust within set limits or "caps" that are specified by the terms of the loan.
When you meet with your chosen lender to complete the application you will need to provide information that you didn't during the pre-approval process.
- Household Income
- Job Tenure & Stability
- Assets & Existing Debt
- Regular Expenses
- Pay Stubs
- Bank Investment Statements
- Tax Returns
- Credit Score or Status
During this process you will discuss the different loan options and programs you qualify for, and finalizing the size of your down payment.
If you place less than 20% down, the lender may require the mortgage to be guaranteed by a third party such as:
- Veterans Administration (VA)
- Federal Housing Administration (FHA)
- Private Mortgage Insurer (PMI)