You’ve decided to purchase a home! Congratulations! Now comes some homework. First, you need to know the price of the house you’d like to purchase. This is a great starting point for your search because you will know very quickly if the houses in this price range will work for your actual budget. Then you will need to input the amount of your down payment. This amount will likely depend on the type of loan you’d be obtaining as certain loans require certain percentages of down payments. The next step will be to input the length, or term, of the mortgage you’re seeking. This term will typically be 30 years or 15 years. Finally, you will need to know the annual interest rate of the loan. Most mortgage calculators will have today’s interest rates handy.
After inputting this information, the mortgage calculator will give you your monthly payment, as well as an amortization or payment schedule. Remember that your monthly mortgage is only part of the cost of owning your home, as homeowner’s insurance, property taxes and HOA fees in some cases will also make up this cost. Some mortgage calculators you may want to try include the following: mortgagecalculator.org; bankrate.com, QuickenLoans.com.
Now it’s time to fill out the mortgage application so you can get pre-qualified before your home search. The mortgage application is also known as the Uniform Residential Loan Application. This five-page document gives the lender some basic information needed for them to approve or deny you a mortgage loan. Some information you will need to fill out the form includes: the most recent 2 years of residence history, 2 years of employment history, all sources of income, all current housing expenses (whether rental or mortgage), all asset information (bank account balances, etc) and all liabilities (credit card debt, student loans, child support, alimony). Once you submit the application, you will be told when you can expect a response.
I’m available to answer any questions you may have about this process. I look forward to working with you in your home search!
Call me at (480) 241-1040 or fill out this form: Contact Me