Moving in to a home that's all your own is exciting. But before you can embrace your own space, you'll need to know how to get a mortgage.
At Geddes Federal, we get it. No one is born knowing what PMI stands for, or whether a fixed or adjustable rate is best.
To get answers to your questions, click on a question below:
- How to Get a Mortgage
- How to Qualify for a Mortgage
- How to Get the Best Mortgage Rate
- How to Get Pre Approved for a Mortgage
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How to Get a Mortgage
An important first step to moving in to your new home is understanding how to get a mortgage.
Some people may also ask "how to get a home loan," or "how to get a loan for a house." However you ask the question, we're here to help you know what you need to know so you can make a decision that works for you and your budget.
How to Get a Mortgage: Get Your Credit Right.
Knowing your credit score is an important first step to knowing how to get a mortgage.
A higher credit score can mean a better deal for you. Typically, your credit score should be at least 620 to get a mortgage.
Worried Your Credit Score Isn't Good Enough to Get a Mortgage? Not Sure? We Still May Be Able to Help.
There are ways to improve your credit score. These include, but are not necessarily limited to:
- Pay your bills on time
- Challenge errors in your credit report with creditors or credit bureaus
How to Get a Mortgage: Know Your Debt-to-income Ratio (DTI)
How much debt you have compared to how much money you make is a very important thing when it comes to qualifying for a mortgage.
You can figure out your Debt-to-Income Ratio (DTI) by adding up your debt (anything you owe, like credit card debt, student loan debt, etc.) then dividing that number by your income (how much your job pays you and any investments).
How to Get a Mortgage: Affordable Down Payments
A down payment is a percentage of a home purchase price that you pay when you get a mortgage.
For example, if you're eyeing a home that is $80,000, and a down payment is 20%, you would need to pay $16,000 as part of an upfront payment for your mortgage.
At Geddes Federal Savings and Loan Association, we offer lower down payments for first time home buyers.
When you get it at Geddes, you also don't have to pay Private Mortgage Insurance (PMI), which could save you hundreds every month. At Geddes Federal Savings and Loan Association, you may be surprised how affordable a down payment could be.
How to Get the Best Mortgage Rate
There are a few things you can do to get the best mortgage rate available. This includes:
- Improving your credit score - Paying your bills on time and keeping your credit card balance below 20% of your credit limit can help
- Having consistent proof of employment - Having and keeping a job shows that you have a consistent, dependable income, so you'll be able to afford a mortgage payment, and make your mortgage payment on time
- Making a larger down payment on your home - When completing the mortgage process, you'll need to make a down payment. This is typically 20% of the price of the home, but can be much lower for first time home buyers
Geddes Federal Savings and Loan Association offers plenty of mortgage options. This includes some of the best mortgage rates near Syracuse, NY and the surrounding areas.
We can help you get a mortgage rate that fits your budget.
How to Get a Mortgage: Fixed Rate or Adjustable Rate?
A fixed rate mortgage means that your mortgage rate stays the same every month. That means that your mortgage payments also stay the same.
An adjustable rate mortgage (sometimes called a variable rate mortgage) means that your mortgage rate can be lower or higher some months. One advantage of an adjustable rate mortgage is that you may be able to start with a lower mortgage rate, which means lower payments. As you advance in your career, you'll most likely make more money, which also could make an adjustable rate mortgage an affordable, preferable option for you.
"Lowest mortgage rates around!"
- Jay, a satisfied Geddes Federal mortgage customer
Geddes Federal offers many different options for both fixed rate mortgages and adjustable rate mortgages. Which is best for your budget?
How to Qualify for a Mortgage
The next step in the mortgage process is getting pre-qualified for a mortgage. Pre-qualifying for a mortgage is as simple as answering a few questions, such as Debt-to-Income ratio.
In brief, you can figure out your Debt-to-Income ratio by adding up all of your debt (such as credit card debt, student loan debt, medical debt, etc.) and dividing that number by how much money you make (such as how much your job pays, and any investments you may have).
While your Debt-to-Income ratio is all you'll need to get pre-qualified for a mortgage, it's important to also consider all of the costs that come with buying a home. This includes:
- A down payment on a home (typically 20% of the home's price, although this could be much lower for first time home buyers)
- Your credit score will need to be high enough to get your mortgage loan application approved (typically, your credit score will need to be at least 620)
- When you get to the pre-approval and application parts of the mortgage process, you'll also need to provide proof of income
- Closing costs will also need to be paid for (these range from 2% to 5% of the home's price)
Have Questions About How to Qualify for a Mortgage?
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Geddes Federal can pre-qualify you for a mortgage, and let you know how much you pre-qualify for. For example, if you get pre-qualified for a mortgage at Geddes Federal Savings, we'll both tell you that you pre-qualify and tell you how much of a mortgage loan you can get, such as an $80,000 mortgage loan, so you know which homes you can afford when house hunting.
You May Pre-Qualify for a Mortgage
How to Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage is different than pre-qualifying for a mortgage.
Getting pre-approved for a mortgage means that you'll have to provide paperwork that proves where you work and how much you get paid.
You also may need to provide some other financial documents. These could include:
- checking and/or savings account statements
- documentation of any investments you may have
- documentation of any money that you receive from an inheritance
You'll know which specific financial documents you'll need to provide during the pre-approval process.
If you get pre-approved, you should tell the seller of the house and your real estate agent. Pre-approval proves to the home seller that you'll likely be able to close the deal and get a mortgage loan that will cover the home price.
More often than not, there are other people who are interested in the home you're looking to get a mortgage for. Being able to show pre-approval makes you a better choice for the seller.
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How to Get a Mortgage: Apply for a Mortgage Loan
This is when the mortgage process stops being a "might," and starts getting real.
To complete a mortgage loan application, you'll want to have all of the financial paperwork that you had for your pre-approval ready.
While a mortgage loan application can be tedious and take some time, we make it faster and easier.
"My wife and I had a Geddes mortgage for over 15 years. The application process was easy, staff wonderful and they always owned our mortgage...Both my wife and I would recommend Geddes and would use them again."
- Donald, a satisfied Geddes Federal mortgage customer
How to Get a Mortgage: Home Closing
This is it! Once your home closing is done, get ready to move in to your new home!
Your mortgage becomes official on the day of your home closing. On the day of your home closing, you'll need to:
- Pay closing costs
- Pay your down payment
- Sign the closing paperwork to make it official
Closing costs are anywhere from 2% to 5% of the home's cost. You'll be informed of the exact closing costs at least 3 days before your home closing.
"They were easy to work with and they made the closing paperwork very simple, making it a quick and easy closing."
- Meredith, a satisfied Geddes Federal mortgage customer
Now That You Know How to Get a Mortgage, Get it at Geddes
Geddes Federal Savings and Loan Association is the obvious choice when you need a mortgage loan near Syracuse, NY or the surrounding areas.
- Our Mortgages Are Affordable
- Low Mortgage Rates
- Quick and Easy Pre-Qualify and Pre-Approval
- We Simplify the Application and Closing
- At Geddes, You Could Save Hundreds Every Month Because You Don't Have to Pay Private
- Mortgage Insurance (PMI)