Homebuying can be a complex process but understanding the basics of mortgages is a good place to start! There are many different mortgage products available, and the terms of the loan will vary depending on the lender and the borrower's circumstances.
In my home buying journey, I researched as much as possible to determine what mortgage was ideal for me. I wound up getting a 30-year fixed-interest rate mortgage simply because I received a low-interest rate due to my credit score. My down payment was more than 20% so I didn't have to worry about the extra costs of Private Mortgage Insurance (PMI). Plus, I plan to stay in my home forever, so I determined a fixed-rate mortgage would be best.
My case may not be the same for you, which is why I'm happy to share the basics of each mortgage product and list the pros and cons so you know what to look out for if and when you're ready to choose.
To help make it easier, I'll share who the mortgage product may be ideal for, to help eliminate the common question “is this mortgage best for me?"
here's a quick and dirty of what we'll cover:
|
what are the types of mortgages?
When you take out a mortgage, you’ll be responsible for repaying the loan over an agreed period of time. Based on the mortgage type you might choose, it’ll affect the type of interest rate, your loan term, and the costs that you may have to pay upfront or overall, outside of making a down payment.
Here’s a list of each mortgage type. To take a closer look, click on the link to learn more:
CONVENTIONAL loans
- Conventional Mortgage
- Jumbo Loan
- Fixed-rate Mortgages
- Adjustable-Rate Mortgage (ARM)
- Second Mortgages: Home Equity and HELOCs
- Reverse Mortgage
Government Loans
what do i need to get a mortgage?
No matter what mortgage product you choose, you’ll still be required to take a few steps to apply. Here’s what lenders will be looking for you to give them. Psst… having the following documents ready will help speed up the decision process of getting pre-approved and approved for a mortgage.
- Employment
- Proof of Income
- Credit score documentation
- Debt-To-Income(DTI) ratio: Your DTI tells lenders what you owe compared to what you earn.
- Proof of assets and liabilities
- The property type you’re looking to buy
All lenders are different, so make sure you confirm the information they’ll need when getting a loan.
|
what mortgages does skyla offer?
At Skyla, we have multiple mortgage options to choose from. Here's a quick list:
- Home purchase
- 15 & 30 year fixed-rate mortgage
- Welcome Home Loan
- Adjustable-Rate Mortgage (ARM)
- Land Loans
- Mortgage Refinance
- Home Equity
- Home Equity Line of Credit (HELOC)
- Second mortgage
If you have any questions, our Mortgage Loan Officers are here for you. You can send an email, give us a call at 704.375.0183 x 1525, or visit any of our branches.
ready to apply for a mortgage? here's what next
Phew - this was quite a lot of information but helpful when you're choosing the mortgage option that's ideal for you!
It's a lot to process but it’s important to shop around and compare mortgage products before making a decision. Taking out a mortgage is a big commitment, and it’s vital to make sure that you understand all of the terms and conditions before signing on the dotted line.
Once you know which mortgage product is right for you and you've done your research on the lender that offers the mortgage product at a rate that may work for you, the next best step is getting pre-approved.
Woo-hoo! You're on your way to getting a mortgage. I'm so excited for you!!
If you have any questions, our Mortgage Loan Officers are here for you. You can send an email, give us a call at 704.375.0183 x 1525, or visit any of our branches.
.png "Yanna")