Wouldn’t it be great if you could tailor your mortgage to fit your needs? Imagine having the freedom to choose a loan term that aligns perfectly with your financial goals—whether you want to pay off your home faster or keep your monthly payments lower. Instead of being locked into a one-size-fits-all mortgage, you could have a solution designed around what works best for you. Mortgage 1’s Pick a Term program is the solution you need.

Interested in Our Pick a Term Program? Start today by getting pre-approved. It’s quick and hassle free. Give us a call at 1-866-532-0550 to learn more or get preapproved today with our easy-to-use digital preapproval app. With Pro SNAP, getting approved is secure, convenient, and takes as little as 15 minutes.

What is Mortgage 1’s Pick a Term?

Mortgage 1’s Pick a Term program gives you the power to choose a mortgage term that fits your financial goals. Unlike traditional fixed-term loans that limit you to 15, 20, or 30 years, Pick a Term allows you to select a loan length from 8 to 29 years. This flexibility means you can tailor your mortgage to your budget, lifestyle, and long-term plans.

How Do I Qualify?

Choosing your ideal mortgage term is a great option, but making sure you qualify is the first step. Here are the key requirements to qualify for a mortgage where you call the shots, getting you on your way to more financial freedom. You’ll need to have:

A Minimum FICO® Score of 620

Your credit score plays a crucial role in qualifying for a mortgage. For Pick a Term, you’ll need a minimum FICO® score of 620. This ensures that borrowers have a history of responsible credit use and can manage their monthly mortgage payments.

If your score is below 620, consider these steps to improve your credit score:

• Paying down outstanding debt to lower your credit utilization.
• Making on-time payments on credit cards and loans.
• Avoiding new credit applications before applying for a mortgage.

A higher credit score may also help you secure a lower interest rate, saving you money over the life of the loan.

Debt-to-Income Ratio of No More Than 50%

Lenders also assess your debt-to-income (DTI) ratio to determine if you can comfortably manage your mortgage payments. Your DTI ratio is the percentage of your monthly income that goes toward paying debts, often including:

• Personal or student loans
• Auto loans
• Credit cards
• Child support
• Rent/mortgage
• Other outstanding debts

To qualify for Pick a Term, your DTI ratio must be 50% or lower. If your DTI is too high, you may need to:

• Pay down debts to reduce your overall obligations.
• Increase your income through additional work or promotions.
• Avoid taking on new loans before applying for a mortgage.

A lower DTI ratio not only improves your chances of qualifying but also makes it easier to manage your mortgage payments long-term.

A Minimum Down Payment of 3%

Saving for a down payment is one of the biggest hurdles in homeownership. With Pick a Term, you can get started with as little as 3% down, making it a more achievable option compared to the traditional 20% other loan programs require.

For example:

• A $250,000 home requires at least $7,500 down.
• A $400,000 home requires at least $12,000 down.

While 3% is the minimum, putting down more can help you:

• Lower your monthly mortgage payment.
• Reduce your overall interest costs.
• Build home equity faster.

If you’re struggling to save for a down payment, consider:

• Setting up automatic savings contributions.
• Looking into down payment assistance programs.
• Using gifts from family members, if permitted by your lender.

Funds to Cover Closing Costs

Closing costs cover the fees and expenses required to finalize your home purchase. With Pick a Term, you’ll need to budget for closing costs, typically between 2% – 6% of the home’s price.

Closing costs can include:

• Loan origination fees
• Appraisal and home inspection fees
• Title insurance and escrow fees
• Prepaid property taxes and homeowners insurance

Fortunately, there are ways to manage these costs without significantly impacting your savings. Seller concessions may be an option, allowing the seller to contribute toward closing costs as part of the purchase agreement. Additionally, some loan programs and down payment assistance programs offer grants or low-interest loans to help cover closing expenses.

It’s also important to review your loan estimate carefully, as this document outlines all expected closing costs, helping you budget accordingly.

Take Control of Your Mortgage with Mortgage 1

At Mortgage 1, we put you in control with pick-a-term, an option to get a flexible mortgage term that fits your life. Choose a loan length from 8 to 29 years, balance your payments with your financial goals, and build a mortgage that works for you.

Ready to call the shots? Contact Mortgage 1 today to explore your options, or get preapproved with Pro SNAP, our fast, simple, and secure, online mortgage application.