Personal Resource Center
Costs of home ownership
Being able to afford rent is a good indicator that you might be able to afford a mortgage. But there is more to affording a house than just the monthly payment on your loan. The following expenses are also part of home ownership, and in many cases these costs are factored in to your monthly mortgage payment to your lender:
- Property taxes
- Homeowner's insurance
- Interest on your mortgage loan
- Private mortgage insurance (PMI)
How much can you afford?
Try using a mortgage calculator to find out how much house you can buy. You just need to know which numbers to plug in. Once you determine how much you can afford to pay each month on a mortgage loan, what your interest rate will be, the mortgage period you want (30 years is standard), and your down payment, the Synovus mortgage calculator will tell you what price home you can afford.
Getting yourself financially ready
When you are getting ready to apply for a mortgage, make yourself an attractive candidate by getting your finances in order. Specifically, you'll need some money saved up for a down payment and closing costs, a debt-to-income ratio of 43% or below, and a credit score of 580 or higher.1 The better your financial picture, the more likely it will be that a lender will prequalify you for a mortgage and at a lower interest rate.
We understand that there can be barriers to homeownership for people who don't think they have a sufficient income or who lack the knowledge about how to buy a home. So we offer mortgage loan products to facilitate homeownership for all people. Two products to consider are Federal Housing Administration (FHA) loans and U.S. Department of Veterans Affairs (VA) loans.
About FHA loans
The FHA helps people get a mortgage by requiring less money down than what's usually required with conventional loans. You can get a government-backed FHA loan with only 3.5% of the purchase price of a home as the down payment, compared with 10% or 20% typically required for a conventional loan. This can make the difference between buying a home now and waiting, possibly several years, to save enough cash.
About VA loans
Veterans, active military, and eligible spouses can buy a home with no down payment at all through this home loan sponsored by the government. With a VA loan, you'll need to meet the military service requirement plus maintain a debt-to-income ratio set by the lender.
Help is available
If you can't afford to buy a home now, you might want to meet with a housing counselor.2 Available at little to no cost through the U.S. Department of Housing and Urban Development (HUD), a housing counselor can help you draw up a plan that puts you on the path to owning a home.
If you think you're ready to be a homeowner now or if you need advice on how to begin the process, contact a Synovus mortgage specialist to talk about your options. We're here to help you achieve your homeownership dream.