Your credit, your credit scores, and how wisely you shop for a loan that best fits your needs have a significant impact on your mortgage interest rate and the fees you pay. To improve your credit and your chances of getting a better mortgage, get current on your payments and stay current. About 35% of your credit scores are based on whether or not you pay your bills on time. About 30% of your credit scores are based on how much debt you owe. That's why you may want to consider paying down some of your debts. A down payment is the amount you pay toward the home yourself. You put a percentage of the home’s value down and borrow the rest through your mortgage loan.

Dream Big. Stay Focused. Make it Happen.

Don't hide important financial information. Hiding negative information may delay or derail your loan application.

Happiness is eating pizza in your dream kitchen. Instead of: I'll buy a house when I can afford to. Try this: Start a home savings account and move money into it every month.

The mortgage process - 6 Simple Steps While working through the mortgage loan process, there are things you can do to delay your loan closing or even disqualify you from getting the loan. Let's discover a few things to be aware of.

With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage(ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and your lender can help you choose the right product.

A mortgage payment may include: Principal and interest (P&I) Your principal and interest payment depends on your home loan amount, the interest rate, and the number of years it takes to repay the loan. Principal is the amount you pay each month to reduce the loan balance. Interest is the amount you pay each month to borrow money. Mortgage insurance Mortgage insurance is often required for loans with less than a 20% down payment. Property taxes The local assessor or auditor’s office can help you estimate property taxes for your area. Homeowner’s insurance You can call one or more insurance agents to get an estimate for homes in your area. Ask if flood insurance is required. Home Loans - Frequently Asked Questions