5 Year Interest Only

For our traditional mortgages, you'll need the standard 20% down payment. But your situation might be different. To know for certain, it's best to connect with our mortgage lending team so we can help you find the right home loan for your situation.

A good rule of thumb is to have a mortgage payment that's no more than 28% of your income. Keep in mind, lenders also look at your debt-to-income ratio. If you add up your monthly debts—student loans, credit cards, auto loan payments, etc.—and divide them by your gross monthly income, you'll know your debt-to-income ratio. Most lenders look for a ratio of 36% or less.

Along with the down payment and monthly payment, you have:

• Closing costs, which may be between 1% and 5% of the loan
• Property taxes
• Home insurance
• Mortgage insurance, when the down payment is less than 20%

Plus, as a homeowner, you’re responsible for upkeep and maintenance, so it’s a good idea to have extra money budgeted for those expenses.

Come and see us! A visit with one of our mortgage lending specialists will lead to you getting pre-qualified for a loan. Our mortgage lending team can find out what loan amount you may qualify for and help you pick the best type of loan for the home you hope to buy. They can also help you create a strategy for coming up with a down payment and getting your finances in order for buying a home.

The first step is getting a copy of your credit report. You might be surprised to know that many reports contain errors or old debts that have been paid but not cleared on the report. These errors can drag down your score, so it's important to get them fixed.

Check out our articles on strategies for budgeting and for coming up with a down payment. Improve your debt-to-income ratio by making extra payments to remove debts more quickly. Start a savings plan for a 20 percent down payment.