Mortgage Information & Calculator

Getting Preapproved:  Some may say this step is optional but it is not!  Please get preapproved before going to look for houses.  During preapproval, your lender will thoroughly review your finances, credit score, debt to income ratio and a variable of other things.  Once preapproved buyers will have a letter of commitment they can provide on any potential offers they make. With this conditional commitment in hand you are put at a competitive advantage when writing offers.  

Ready you down payment:  When it comes to preparing your down payment, the earlier the better.  This is going to be the largest lumpsome expense associated with your home loan.  It will also help determine the structure and montly expense of your loan.  Generally lenders will require a private mortgage insurance (PMI) on any loan with a down payment less than 20%.  This will increase your monthly payments and overall cost.  See which type of loan works best for you by talking to a lender.  Please email me for lender reccomendations. 

Calculate Mortgage Fees:  While your down payment is a large expense there are other expenses to consider.  Broker fees, application fees, appraisal fees, title-related fees and more all factor into your closing costs.  

Improve Your Credit:  Your credit score reflects how well you’ve managed debts in the past and lenders use it to assess your likelihood to repay your mortgage in the future. In general, higher credit scores help you qualify for better mortgage terms and lower interest rates, reducing the total amount paid over the life of your loan. If your credit score is low, it might be wise to review your credit report and consider strategies for improving credit before your mortgage application. You are typically entitled to one free annual credit report from the three major credit bureaus per year.

Time New Employment Wisely:  Factors like your credit score and down payment are usually some of the first factors lenders weigh when creating your mortgage application.  One of the biggest factors alongside credit score and down payment is employment stability. It may not reduce your chances of qualifying for the terms you want, lenders are looking for consistency and security when assessing your financial profile. The same remains true for any co-signers. If you plan to look for a new job soon, speak to your lender prior and follow their advice.  

Know Your Budget:  We all have our typical dream home.  Maybe it has a pool or a large backyard, maybe it has large spaces for hosting.  Whatever the case may be it is good to be realistic about what you can afford.  Use the mortgage calculator below to give you a ballpark of what you might be able to afford.