Considering a mortgage? Here’s your easy list of facts!


For the uninitiated, a mortgage is like a home loan, where the home itself serves as the collateral. This is the easiest form of financing, although getting a mortgage is not as easy as it may sound by definition.

In this post, we bring a list of facts and details you must know about.

  • Your credit score is important. Lenders want to know if you are capable of repaying the loan in time, and for that, the credit score is of most importance.
  • It is possible to improve your credit score. If you start in advance and keep a check on your debts and how dues are being paid, you can improve your credit score.

  • Get the papers ready. Your employment status and monthly salary determines what you can pay realistically each month for the mortgage. Make sure that the papers related to your income for the last two years are ready.
  • The ratio is important. The debt to income ratio shouldn’t ideally exceed 38% in the ideal case, and your lender will also want to ensure that the mortgage payment, including all dues, doesn’t increase 28% of your monthly income.
  • You can get an idea in advance. There are easy mortgage calculators that can really help in understanding what you may have to pay each month, taking all relevant factors into account. For instance, you can navigate here.
  • Pay what you can. Traditionally, it is a norm to pay 20% of the property value for down payment, but that doesn’t have to be the case with options like USDA loans. With that said, it is best to pay what is affordable, because you can reduce considerable interest.
  • The term can be short. Experts recommend 15-year mortgages for many people, and that totally makes sense because the interest amount reduces considerably. However, it depends on your situation, as well, because 30-year mortgages may seem more affordable in certain cases.

  • You can negotiate with the lender, regardless of whether you choose fixed or adjustable mortgage rate. Take your chance, because there is enough scope, especially when the credit score is your favor.

Check online now to find more details on mortgages. Consider if the house is worth the price and shop around for mortgages, because the first deal isn’t always the best one. Also, take a moment to decide if the investment makes sense in the next ten years.