Michelle Connor
Associate Loan Originator
112 Huntington Street,
Shelton, CT 06484
NMLS# 124933
Direct: 203-445-1706
Fax: 866-252-1058

Laying the foundation

You have decided that you are ready to begin your home-buying journey. There are a few steps to take that will ensure that you will be getting the right mortgage to fit your needs.

STEP 2: Time to get started

You’ve done your homework and reached the informed decision that buying a home is the right choice for you. You know how much you can afford and have even narrowed down what type of home you want to buy. Now it is time to start the mortgage process. Luckily, PrimeLending is on your team to help guide you.

Build Your Budget

Having a set budget is key. Answering a few questions before you begin looking will help you find the best loan option to fit your budget. Do you have a down payment? What is your income-to-debt ratio? What is your credit score? These basic answers will go a long way to making informed decisions. You can find more about budgeting for a home here.

Plan Your Payments

You will need to figure out your monthly payments and how much you can comfortably afford. Your monthly mortgage payment consists of Principal, Interest, Taxes and Insurance, also known as PITI.

  • The initial amount you borrow to purchase the home and the remaining outstanding balance throughout the life of the loan is the PRINCIPAL.
  • The charge for borrowing the money is the INTEREST.
  • TAXES are assessed by your local government and typically paid to your lender as a portion of your payment and collected in an escrow account. The lender will then pay them to the government upon their due date.
  • Established in a similar fashion as your taxes, INSURANCE is collected by the lender and also put into an escrow account. Your insurance comprises two prominent types of coverage. Homeowner’s insurance provides you with coverage for damages inflicted by hazards such as (but not limited to) wind and fire. Mortgage insurance typically is required for those making a smaller down payment on their loan; it provides protection for your lender in the instance that you are not able to fulfill the mortgage requirements and repay your loan.

Take Interest in Your Rate

One of the biggest concerns for homeowners is their mortgage interest rate. That’s because it directly affects the monthly payments for the life of the loan. Because of this, homebuyers search for steps they can take to obtain the lowest rate available.

There are several factors to consider when researching interest rates:

  1. Deciding What's Best
  2. Laying The Foundation
  3. Putting It Together
  4. Finding Your Home
  5. Buying And Closing