Trust Your Hometown Lender with Your Home Loan
Purchasing a home is one of the largest financial decisions you will ever make. It’s important to work with someone you trust who can offer the expertise and advice you need. Our experienced mortgage lenders know the Central Pennsylvania market and will work with you to find the right mortgage product to match your unique situation.
Whether you’re building a new home, purchasing an existing home, or refinancing your current mortgage, you can count on Traditions Mortgage to guide you through the mortgage process.
For additional details and information on our mortgage products, contact one of our Mortgage Partners.
How Do You Get a Mortgage Loan?
Ideally, you will begin the process of applying for a home mortgage before you start the process of looking for a new home. One of the first things to do when shopping for a mortgage is to check your credit and put together a budget. You want to know how much you can comfortably pay each month. For the most part, your total monthly debt payments, real estate taxes and homeowner’s insurance shouldn’t be more than 43% of your monthly income.
After you’ve checked your credit and calculated how much you could afford, you might decide that you’re not ready to buy a house just yet. You might want to work on improving your credit so that you get a better interest rate, or you might want to save more money for a down payment. However, if you decide you are ready to buy a house, the next step is to talk to mortgage lenders to see what types of terms they can offer you and to learn more about the types of mortgages available.
At this stage, a lender might preapprove you for a loan, which means that they will look closely at your income, other debts and credit history and conditionally approve you to borrow a certain amount. Once you have preapproval from a lender, you can start to shop around for a house.
When you find a home you want to buy and the offer is accepted, the process of actually getting your home loan begins. At this point, your lender will ask you for a considerable amount of documentation to verify your income, debts, and source of a down payment. An appraisal on the property will also be ordered by your lender. Once the lender reviews the appraisal and your documentation, a process known as underwriting, your lender will determine if your loan can be approved, and if so, clear you for closing.
What are the Types of Home Loans?
Mortgages are not “one-size-fits-all.” There are different types of home loans available based on the kind of home you are buying, your credit history, and the kind of interest rate you want.
Types of mortgages include:
- Conventional fixed rate
- Conventional adjustable rate
- Construction to permanent
- Swing or bridge loan
- Federal Housing Administration (FHA) loan
- Veterans Affairs (VA) loan
- United States Department of Agriculture (USDA) loan
- Pennsylvania Housing Finance Agency (PHFA) loan
If you do not qualify for one type of mortgage, you might be a candidate for another type. Your mortgage lender will help you choose the loan that best meets your needs.
How Much Can You Afford to Borrow?
Knowing how much you can afford to borrow can help you determine if buying a home is the right choice for you at this time. An online mortgage calculator can help you figure out the loan amount you can afford and can give you an idea of the monthly payment you can expect based on the purchase price of the house, the size of your down payment, the property taxes on the home, and the interest rate.
Why Work with Traditions Mortgage?
When you’re in the process of buying a home and looking for a mortgage lender, you want to find someone who knows the local market well and who you can trust. The Mortgage Partners at Traditions Mortgage know the local mortgage market in York, Lancaster, Dauphin and Cumberland Counties. We will work with you to help you find the right home loan for you, whether you’re a first-time buyer, building a home from scratch, or qualify for a government loan program.