About Your Mortgage

HOW MUCH AM I qualified to borrow?

Every person is unique. How much you can borrow for a mortgage depends on your credit score, debt-to-income ratio, amount of cash available for a down payment, and whether you qualify for a special loan program. The best way to find out how much you can borrow is to meet with one of our Loan Officers.

WHAT WILL MY INTEREST RATE BE?

Mortgage interest rates vary depending on your credit score, whether you qualify for a special loan program, the size of your down payment, the length of the loan (10, 15, or 30 years), and more. We review all available loan programs and options to ensure that our customers get the best possible interest rate.

what will my monthly payment be?

Your monthly payments depend on the cost of the home, the size of your down payment, whether you qualify for a special loan program and your mortgage interest rate. Try the following calculation to get a rough estimate:

• $6-$7 per month for every $1,000 of purchase price OR

• Multiply the purchase price by .006 or .007. 

  • Ex.  $100,000 purchase price x .006 = $600 per month, $100,000 purchase price x .007 = $700 per month.  Therefore, you can reasonably expect a payment of around $600 - $700 per month on a $100,000 house.

Loan Terms and Vocabulary

IS THERE A GLOSSARY OR A COLLECTION OF MORTGAGE INDUSTRY TERMS THAT i can use?

We’re so glad you asked! We know that the mortgage loan industry uses a lot of specialized vocabulary, so we’ve created this glossary of home lending terms.

whAT IS PITI?

PITI is an acronym for Principal, Interest, Taxes, & Insurance (including mortgage insurance). It’s the total monthly payment a borrower will pay for a home.

First Time Home Buyer Resources

Does lincoln lending work with first-time homebuyer’s?

Of course! We’ve even created a special collection of resources and articles to help first-time homebuyers plan for and understand the home buying process. Click here to learn more.

is my CREDIT SCORE high enough TO BUY A HOUSE?

Credit score requirements vary depending on loan programs, but a good general rule is at least 580 for government programs (FHA, VA, USDA) and 620 for a Conventional loan.

WHAT IS Private MORTGAGE INSURANCE? (PMI)

Mortgage insurance, sometimes referred to as Private Mortgage Insurance, is a special type of insurance that protects the mortgage lender if a borrower defaults on the loan. The PMI premium is added to your monthly mortgage payment. Most loan programs require private mortgage insurance for borrowers who aren’t able to make a 20% down payment.

WHAT IF I DON’T HAVE enough saved for a 20% down payment?

Having a 20% to put down is fantastic, but there are still great options for buyers who need a smaller down payment. If you can’t afford 20% down, you’ll most likely need to purchase private mortgage insurance (PMI), which will become part of your total monthly payment. PMI covers the lender in case a borrower defaults on the loan. 

The Loan Process

hOW LONG IS MY PRE-APPROVAL GOOD FOR?

Pre-approvals are typically good for 90 days as long as there are no major changes in your employment status, credit score, debt-to-income ratios, etc. Once a pre-qualified borrower has an accepted contract on a home, then we may pull a new credit report if it has been longer than 90 days since original pre-qualification date.

caN I INCLUDE COSTS OR REPAIR IN MY LOAN?

Only under special circumstances are you allowed to include closing costs or repairs into the loan. These rules vary across loan programs and your individual situation, so it is a good idea to speak with a lender first.

hOW LONG IS MY QUOTED INTEREST RATE VALID?

We quote the best possible interest rates at the time, but rates can change daily. Once a borrower is under contract and has started the loan process, they can decide on a time to “lock” their rate with the lender. Once a rate is locked, it cannot be changed for a specified period of time (typically 30, 45, or 60 days), ensuring that the rate does not rise unexpectedly for the borrower.