15-Year Fixed-Rate Loans: Faster Homeownership, Lower Interest

• Faster Equity Buildup: With higher monthly payments compared to longer loan terms, a 15-year fixed mortgage allows you to build equity in your home more quickly.
• Lower Interest Rates: Typically, 15-year fixed mortgages come with lower interest rates compared to longer-term loans, resulting in significant interest savings over the life of the loan.
• Interest Savings: Because the loan term is shorter, you'll pay less interest over time compared to a 30-year mortgage, saving you thousands of dollars in interest payments.
• Debt-Free Sooner: By paying off your mortgage in 15 years instead of 30, you'll be debt-free sooner, providing financial security and flexibility for other goals like retirement or education expenses.
• Fixed Payments: With a fixed-rate mortgage, your monthly principal and interest payments remain constant throughout the life of the loan, providing predictability and easier budgeting.

• Credit Score: Lenders typically require a good to excellent credit score to qualify for a 15-year fixed mortgage. While specific credit score requirements vary between lenders, a score of 620 or higher is often necessary.
• Income and Employment Verification: Lenders will assess your income stability and employment history to ensure you have the financial means to make higher monthly payments on a 15-year mortgage.
• Debt-to-Income Ratio: Lenders consider your debt-to-income (DTI) ratio, which compares your monthly debt payments to your gross monthly income. A lower DTI ratio increases your chances of qualifying for a 15-year fixed mortgage.
• Down Payment: While down payment requirements for a 15-year fixed mortgage may vary, typically, a down payment of at least 20% of the home's purchase price is recommended to avoid private mortgage insurance (PMI).
• Property Appraisal: The property you intend to purchase will need to be appraised by a licensed appraiser to determine its value and ensure it meets lending standards.

By meeting these requirements, borrowers can take advantage of the benefits offered by a 15-year fixed-rate mortgage, including faster equity buildup, lower interest rates, and the ability to become debt-free sooner.

To secure approval for a 15-year fixed mortgage, you'll need to provide essential documentation:

• Proof of Income: Recent pay stubs, W-2 forms, and tax returns for the past two years to verify your income stability.
• Employment Verification: Contact information for your employer and possibly bank statements showing regular income deposits to demonstrate stable employment.
• Credit History: Authorization for the lender to pull your credit report to assess your credit history and score.
• Asset Documentation: Bank statements and investment account statements to verify your assets.
• Identification: Valid identification such as a driver's license or passport to verify your identity.
• Property Documentation: Once you've chosen a property, provide documentation related to the purchase, including the purchase contract and any appraisals or inspections.