Fixed-Rate Mortgage

We use a simple formula to determine your maximum mortgage payment. It adds up to this: your monthly income multiplied by 0.45, minus your liabilities. The resulting number is the highest mortgage payment you may be approved for. From there, you can adjust your search to find the perfect home within your reach.

Figuring out how much home you can afford is a key step in the home-buying process. Start by weighing how much money you have coming in, including your monthly income and any other streams of income (pensions, rental income, investments, etc.), versus how much you have going out to cover costs like student loans, credit card balances, and car payments. Other factors come into play, like how much money you are putting down on the home, property taxes, homeowner’s insurance, and HOA fees that may be associated with the home.

Below is a glossary of terms to help you understand how your home affordability if determined.

• Debt ratio – This is determined by dividing your monthly debts versus your monthly income. Depending on the mortgage product, your debt ratio can usually not exceed 45-50%.
• Loan-to-value – The amount of mortgage you are financing versus the appraised value of the home. The higher your down payment, the lower your loan-to-value.
• PMI – Private mortgage insurance (PMI) is a type of mortgage insurance you are required to buy if you take out a conventional loan with a down payment of less than 20% of the purchase price.

You can get started with a pre-qualification process before you begin your search. You’ll know exactly what to expect, the type of monthly payment you’ll have, and the funds you’ll need to close. We know the last thing you need is to find the perfect home and fall in love, only to learn it’s not in your budget.

There are criteria every borrower must meet to qualify for a mortgage loan with us. This typically includes two years of employment at your job or in the same line of work, a minimum credit score of 620, and verified funds to close on the transaction. Once these boxes are checked, our experts can help you figure out the rest. Loans are subject to credit review.

Ideally, new home construction is completed within about 12 months with a general licensed contractor. If the building process exceeds 12 months, contact your Mortgage Specialist who will advise on next steps.

Your credit score is a vital part of determining your mortgage rate and loan amount. A higher credit score could result in a lower rate and lower monthly payment, while a lower credit score could result in a higher rate and higher monthly payment.