3 Important Things To Know About Mortgages

marketingdept • June 18, 2025

Share this article

3 Important Things To Know About Mortgages

Everyone has advice when it comes to buying a home. But there are a few things that you should keep in mind specifically about mortgages. Some of them may surprise you . . . and all of them can be explained by a licensed loan officer. Here are our top 3 things we think you should know about mortgages:

1 - The higher your credit score, the lower your interest rate
 can be. Think about it, the lender is taking a big risk in handing you a significant amount of money. They not only need to be confident you can repay it, they also want to ensure your financial house is in order. So they reserve the best loans for those with good credit scores. Your payment history and ability to manage credit is bundled into that three-digit score.   2 – Don’t chase interest rates.  They fluctuate daily . . . sometimes hourly. It is likely the rates will change between the time you lock in a rate and when close on your home mortgage. But trying to anticipate a rate and beat the system most often results in borrowers missing a key deadline, not closing on time and potentially not getting the home they hoped to buy. Part of the decision to put an offer on a home should include your comfort level with the prevailing interest rates plus or minus .5%. If you can’t absorb that kind of adjustment to your anticipated payments, you need to work with your loan officer to set a different budget and consider a different home.
 
 3 – You don’t need 20%  of the home value as your down payment. In fact, you may only need 3-5% down to get a mortgage. Your Loan Officer will help you explore all the options including VA Loans, USDA Loans, First Time Buyer and other incentives based on your financial status and the community you are hoping to live in. Remember, though, if you don’t put 20% down you will need to factor Mortgage Insurance into your monthly payments (along with property tax and homeowner insurance). Your loan officer will help you put it all together.
So keep an open mind, don’t make assumptions about your eligibility or the timeline, and check with an expert when you have questions or want to understand your options. A licensed loan officer, working with you and your Realtor can help you find the right home and the right home loan to fit your lifestyle, your timeline and your budget.

Recent Posts

September 17, 2025
As interest rates are trending downward, this shift is opening the door to new opportunities to lower monthly payments, consolidate debt, or tap into home equity.
September 8, 2025
In March 2026, the Homebuyers Privacy Protection Act will put an end to the unwanted solicitations many buyers receive after submitting a mortgage application.
September 3, 2025
Back-to-school season is here. Many Gen Z students are benefitting from a part-time job during the school year.
August 27, 2025
Mortgage strategies for retirement planning, including refinancing for retirement and more.
August 21, 2025
Refinances currently account for 46.5% of all mortgage activity. Is your home loan working for you? More homeowners are taking a strategic, big-picture approach to their finances—and home equity is playing a big role in that shift. With high-interest debt, rising living costs, and growing home equity balances, many of
August 14, 2025
Your down payment doesn't need to be a dealbreaker. Whether through local down payment assistance programs or federal loan options like FHA, VA, or USDA loans, there are multiple paths to affordable homeownership in 2025.
August 7, 2025
Looking to buy a new home before selling your current one? Most people think of a HELOC as a second mortgage or a way to tap into equity of your current home; however, another strategy for HELOCs is to use it as a bridge loan to secure a new home before selling your current one.
By marketingdept July 15, 2025
Buy Now, Sell Later: Qualifying for a New Home Without Selling Your Current One
July 1, 2025
To help you understand the buying process, we’ve broken it down into seven common steps The process can vary slightly from one person to the next, due to the many variables that are involved But it usually goes something like this
By marketingdept June 24, 2025
The Value Assurance program is a new and effective way to beat cash offers and increase your odds of getting your bid accepted without accumulating additional financial risk.
Show More