When looking to get a mortgage, there are many questions that you may ask along the way. And if this is your first mortgage, you may be asking, “How much can I afford?” There are many factors that influence the type of mortgage you can qualify for and the costs associated with the mortgage. Many people just want to know what they can afford based on their financial history, income, and more.
While the type and costs of the mortgage depends on many factors, here are a few ways you can get a good idea of how much you can afford.
Know the Rates
Rates vary depending on the financial institution and the type of mortgage you will need. This is where it helps to call and shop around to learn more about rates, but more importantly about the service and costs also associated with a mortgage. The rates are different depending on the number of years you plan to have the mortgage. For example, the rates for a 15-year fixed mortgage are different than a 30-year fixed mortgage because of the length of time you are borrowing money for your loan. You can look at our competitive rates on our website.
Know the Costs
All costs are not created equal. You will really want to compare costs when shopping. One financial institution might have a lower rate but their costs are much higher offsetting any savings to you. Make sure you ask a lot of questions and know what you are paying for in the process.
Know Your Credit Score
Your credit score is a factor that will greatly influence your interest rate. Typically, the higher your credit score, the lower your interest rate. If your credit score is not great, your interest rate could go up. Being aware of this will help you realize how much you can afford.
Know Your Community Bank
The best place to start when looking for your mortgage is your community bank like ChoiceOne Bank. They will help you determine the best mortgage and rate for your lifestyle and budget. They understand the needs of first-time homebuyers and will explain costs and credit scores and everything else you need to feel comfortable. You will know how much you can afford. They will prequalify you for a mortgage so you have a letter to take with you when shopping for your new home. Because our mortgage lenders live and work in our community, they understand your personal needs and the housing market. In most cases, they can prequalify you for a mortgage in 20 minutes.
Use Our Home Mortgage Calculator
Our home mortgage calculator is a great resource for exploring how much your monthly payment would be depending on rate and down payment. Knowing your monthly payment will give you a good idea of how much you can afford. Our home mortgage calculator allows you to calculate the term of the mortgage, interest rate, property tax, mortgage insurance, and home insurance to show you what you would pay each month.
Still Not Sure? Please Ask Us!
Aside from knowing how much you can afford, our experienced lenders at ChoiceOne Bank love meeting with you to help you with the entire mortgage process. They are truly excited to help you buy your dream home and can answer all your questions. You can depend on your lender to stay with you from the beginning to the end…and usually become friends! Book an appointment, email us at firstname.lastname@example.org, call us at 616.887.7366, or visit one of our 12 branch locations.