Common Mortgage Questions Answered

Am I Better Off Renting or Buying a Home?

Deciding whether to rent or buy depends on your lifestyle and long-term plans. Both options have advantages. Renting may provide flexibility, while buying builds equity and gives you ownership. If buying is the right choice for your future, we can connect you with trusted mortgage professionals to guide you through the process.

What Are the Advantages of Buying a Home?

Purchasing a home allows you to invest in a community and create a sense of belonging. It also comes with financial benefits, such as building equity, potential tax savings, and avoiding the cost of rent. With flexible down payment options, homeownership might be more attainable than you think.

What’s My First Step?

The first step is mortgage pre-approval. Unless you’re paying in cash, you’ll need to determine how much you can afford. This involves meeting with a lender to evaluate your finances and obtain pre-approval, making the buying process smoother.

How Much Can I Afford to Borrow?

Your borrowing capacity depends on several factors:

• Debt-to-Income Ratio: Your monthly debt payments as a percentage of your gross income.
• Available Savings: Funds for the down payment and closing costs.
• Credit History: Your credit score and financial track record.
• Property Value: The estimated price of the home you wish to purchase.

How Much Do I Need for a Down Payment?

The required down payment depends on the type of mortgage, the lender, and the home you’re buying. Typically, it ranges from 5% to 20% of the purchase price. Some loan programs offer unique benefits and rules, so discussing options with your lender is crucial.

How Long Does It Take to Buy a Home?

The timeline can vary based on the mortgage process and your circumstances. Recent changes in loan disclosure regulations have streamlined the process, but it can still take up to 60 days or more to complete the purchase.