Mortgage Resources

Steps for Preparing to Purchase

1. Check Your Credit:
   • Why it matters: Lenders use your credit score to assess your risk and to help determine your interest rate
   • How to improve your credit: Pay bills on time, reduce debt, and dispute errors.
     Learn more to check and improve your credit

2. Save for a Down Payment:
   • While down payments can vary, a common range is 3%-20% of the home's purchase price. However, a down payment below 20% typically requires Private Mortgage Insurance (PMI), which will increase your monthly payment. 
   • Some lenders offer loans with lower and even no down payments, such as FHA or VA loans.
3. Understand Your Budget:
   • Determine how much you can comfortably afford for a monthly mortgage payment, including annual property taxes and insurance.
4. Potential Maintenance Expenses: 
   • Make sure you have money left over for life’s unexpected surprises—like a new appliance or unplanned home repair.

Access convenient, easy-to-use budgeting tools and worksheets

Beyond Your Down Payment: Additional Costs to Consider

• Closing Costs: These fees cover various services involved in the homebuying process. They can be anywhere from 2%-5% of your total loan amount include things like:
  • appraisals,
  • title searches
  • attorney fees.
• Closing cost are sometimes negotiable and is an important consideration in any home purchase.
• Home Inspection: A professional inspection can identify potential issues with the property.
• Homeowners Insurance: This protects your investment in case of damage or loss.
• Maintenance Costs: Be sure to factor in potential maintenance and upkeep costs, like an unexpected home repair or new appliance.

What Home Can I Afford?

Find out how much home fits your budget to avoid overspending. This convenient calculator can help.

Your Step-by-Step Guide to the Mortgage Process

1. Get Pre-Approved:
   • What it does: Pre-approval gives you a better idea of how much you can borrow and strengthens your offer.
2. Home Search:
   • Work with a real estate agent you trust. They can help you find the right home. If you have questions, we’re happy to help too.
3. Making an Offer:
   • Talk home purchase terms: Once you found the right home, talk about your offer with your loan officer and real estate agent.
4. Home Inspection:
   • Identify potential issues: A home inspection can uncover problems that may need to be addressed.
5. Loan Application and Underwriting:
   • Provide documentation: Lenders will verify your income, assets, and credit history.
6. Closing:
   • Finalize the deal: Sign paperwork, pay closing costs, and get the keys to your new home.

Key Mortgage Terms to Know 

• Amortization: The process of paying off your mortgage loan with regular monthly installments over set period of time.
• Closing Costs: Fees associated with finalizing a real estate transaction. They often include, but are not limited to: appraisal cost, attorney’s fee, title search.
• Down Payment: A portion of the home's purchase price paid upfront—typically 3%-20% of a home’s purchase price.
• Equity: The difference between the home's market value and what you owe.
• Escrow: This term can refer to a couple of different functions:
  • Funds held by third party (escrow agent) that receives and disburses funds on behalf of the buying and selling parties through the closing of the home sale.
  • Funds held by your mortgage servicer to manage property tax and insurance premium payments on your behalf.
    Learn more
• Mortgage: A loan secured by real estate.
• Points: One-time fee paid upfront directly to the lender to lower your interest rate.
• Pre-approval: A lender's estimate of how much you can borrow based on, but not limited to, your mortgage application and credit check.

Find the Loan that's Right for You