Let Fidelity Bank’s mortgage division, Right By You Mortgage, help make your dream of home ownership a reality! We understand that purchasing a home is one of the most important investments you will ever make. Our knowledgable and experienced mortgage loan officers help to make the mortgage process easy by answering your questions and guiding you along the way. Whether you are a first-time buyer or buying that vacation home you’ve always wanted, Right By You Mortgage by Fidelity Bank offers several loan options at competitive rates to meet your needs.
What Are The Benefits Of Buying vs. Renting A Home?
Home ownership brings a lot of added responsibilities, but it also has its advantages:
- Greater privacy
- You are able to put roots down, giving you a sense of belonging and community
- Homes typically increase in value, build equity, and provide a nest egg for the future
- A home offers budget stability by avoiding the ups and downs of the rental market. If you qualify for a fixed-rate mortgage, your costs would be predictable.
- You may save money through tax benefits associated with home ownership1
- You are able to personalize your home to suit your lifestyle
How Much Can I Borrow?
One of the first steps in buying a home is determining a budget. There are many factors that impact how much house you can afford, such as your credit score, how much debt you have, the amount of your down payment, and the location of the home to name a few. As a general rule of thumb, your housing expenses shouldn’t exceed 30% of your monthly income. You can walk through different scenarios and estimate your monthly payment, including estimated taxes and insurance by using our free online mortgage calculator.
Still have questions about how much house you can afford? Contact one of our local mortgage loan officers for assistance.
I Am A First Time Buyer. How Much Do I Need For A Down Payment?
Down payment requirements vary by mortgage product. There are also mortgage products available to first time home buyers that do not require a down payment. However, mortgage products that allow a down payment of less than 20% of the home purchase price may require private mortgage insurance (PMI) which protects the lender from financial loss if the borrower defaults on the loan. If you’re looking for a mortgage loan option that does not require a downpayment, our 100% Home Loan may help you get into the home of your dreams faster.
How Do I Get Preapproved For A Mortgage?
Before shopping for a new home, it’s a good idea to get preapproved. During the preapproval process, you will share information with your loan officer on income, assets, debt, and credit history. Your loan officer will then be able to educate you on how much house you can afford, review preliminary loan programs, closing costs, and payment options with you, and provide a letter to give your future seller confidence in your offer.
Ready to get started? Complete our easy online mortgage application to get preapproved today!
What Other Costs Are Included In My Mortgage Payment Besides Principal And Interest?
As a condition of your loan closing, you will be required to purchase homeowner’s insurance which protects you against loss as a result of property damage. Your mortgage loan officer will inform you of the type of coverage you need to meet this requirement. Be certain to share this information when you shop for homeowner’s insurance to ensure your coverage is adequate and that all policy and loss information is accurate.
Local governments assess taxes on residential properties based on the property evaluation for their area. Homeowners are responsible for paying their property taxes when billed unless they have established an escrow account with the mortgage lender, who will collect payments from the homeowner on a monthly basis and make them on the borrower’s behalf. When you apply for your mortgage loan, talk to your mortgage loan officer about which option is best for you.
Private Mortgage Insurance:
Loans with a down payment of less than 20% of the home purchase price may require private mortgage insurance (PMI). The amount of the monthly PMI is determined by factors such as loan program, loan-to-value (LTV) and credit score. Some programs do not require PMI on loans and there are options on some loans such as lender-paid PMI (LPMI) where there may be an option to forego the monthly PMI.
A home inspection is an inexpensive way to discover the universal condition of a home. It is important to conduct a home inspection to protect you and your investment. In the long run, it could save you money and prevent you from purchasing a property in need of major repairs. A typical home inspection costs anywhere between $300 and $600. Although most lenders do not require a home inspection to obtain a mortgage loan, they are almost always worth the money spent.
1. Consult your tax advisor for details.