Mortgage Information
If a home is one of the major investments you'll make in your lifetime, your mortgage is one of the most significant "purchases" you will make. You should make sure that like your dream home, the type of mortgage product you "buy" is a perfect fit. The mortgage process can seem complicated, but if you take things step-by-step, you will be in an ideal position to act when you find your dream home. This is why it is a good idea to meet with a mortgage specialist, such as our locally-owned partners at Founders Bank and Trust, to see what price range you pre-qualify for before you start house-hunting in earnest.
Figure out how much you can afford
What you can afford depends on your income, credit rating, current monthly expenses, down payment and the interest rate. While online calculators can help you determine this figure, it is best to visit a lender to find out for sure. A good rule of thumb to use is to assume that you may use 29% of your income toward your housing payment, interest and taxes. If you have no other debts, you may use up to 40 percent of your income. Follow this link to review basic mortgage calculations.
Learn about loan types
If you don't know an ARM from an Assumable mortgage, we can help. Visit our Loan Types page for basic definitions of the most common types of mortgages available. A little bit of buyer education goes a long way in this mortgage market. Remember to ask questions and read the fine print. Shop around, but select a company that has a proven lending track record and outstanding customer service. Your mortgage is likely to be one of the largest "purchases" you'll ever make.
