MORTGAGE
BASICS
Understand your mortgage options and
confidently take the next step towards
homeownership.
Mortgages don't have to be complicated. Here's what you
need to know bout how they work, the different types
available and how to get started.
HOW MORTGAGES WORK
A mortgage is a loan used to purchase a home. You borrow money from a lender
and repay it over time - typically 15 to 30 years - plus interest.
BORROW
You borrow money from
a lender to purchase
your home.
PAY MONTHLY
You make monthly
payments that include
principal and interest.
BUILD EQUITY
Over time, you own more
of your home and build
long-term equity.
WHY GET PRE-APPROVED?
Know what you can afford
Stronger offers on homes
Faster and smoother closing process
Shows sellers you are serious
COMMON MORTGAGE TYPES
There are several loan options available. Here are the most common:
CONVENTIONAL LOAN
Popular choice with flexible terms and competitive rates. Typically requires a higher credit score and down payment.
FHA LOAN
Insured by the government and designed for buyers with lower credit scores and smaller down payments.
USDA LOAN
For eligible rural and suburban buyers. Offers zero down payment options.
VA LOAN
Available to veterans and active-duty service members. Often includes no down payment and no private mortgage insurance.
JUMBO LOAN
Popular choice with flexible terms and competitive rates. Typically requires a higher credit score and down payment.
WHAT AFFECTS YOUR MORTGAGE?
Lender look at a few key factors when determining how much
you can borrow and your interest rate.
Credit Score
A higher score can help you qualify for
better rates and loan options.
Down Payment
More money down can lower your monthly
payment and reduce interest cost.
Debt-To-Income Ratio
Lower debt compared to your income shows
lenders you can manage payments.
Employment History
Stable income and a solid work history gives
lenders confidenced in your ability to repay.
Property Type
The type and condition of the home can
impact your loan options and terms.
TIPS FOR SUCCESS
Check your credit early
Review your score and report
and correct any errors.
Save for more than the down payment
Review your score and report
and correct any errors.
Avoid big financial changes
Review your score and report
and correct any errors.
Work with trusted lenders
Review your score and report
and correct any errors.
LOCAL EXPERTISE
Northwest Indiana market knowledge
TRUSTED GUIDANCE
Honest advice and personalized service
RESULTS DRIVEN
Helping clients achieve their real estate goals
Absolute Realty Solutions is a Northwest Indiana real estate brokerage helping buyers, sellers, investors, and agents achieve their real estate goals through expert guidance, local market expertise, and personalized service.
QUICK LINKS
RESOURCES
CONTACT US
FOLLOW US
© 2026 Absolute Realty Solutions. All Rights Reserved.