A typical mortgage payment is made up of principal, interest, taxes, and insurance. Some borrowers opt for mortgages that do not include taxes or insurance as part of the monthly payment. With this type of loan, you have a lower monthly payment, but you must pay the taxes and insurance on your own.

Refinancing your home means to replace your current mortgage loan with a new one. This is an option when you want to reduce the interest rate and/or alter the term of the original loan.

Beacon offers home loans for borrowers with a minimum of 620 credit score

It is a good idea to get pre-approved before shopping for a home. The pre-approval helps determine what you can afford and provides an advantage in negotiating sales price.

Many realtors require a pre-approval letter before making an offer on your behalf.

When applying for a mortgage you will need to provide:

• 1 month’s paystubs/income documents
• 2 years w2’s or tax returns (for self-employed borrowers)
• 2 months bank/asset statements.
• Additional documentation may be required.

A mortgage prequalification is a quick estimate of how much home you can probably afford based on verbal information.

A pre-approval is much more valuable because it means the lender has checked your credit and verified your documentation to approve a specific loan amount.