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Home Buying Made Easy
Getting a mortgage shouldn't be intimidating.
Find out how the process works, from getting prepared to closing.
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Affordability
Before you start shopping for a new home, it's important to figure out what you can afford.
Affordability
Know What You Can Afford.
Make Sure You’re Ready
Buying your first home is a big financial step. You’ll want to consider the added financial responsibilities, including things like moving costs, home repairs, landscaping, property taxes and insurance. You should have a steady income, manageable debt and feel confident you will stay in one place for awhile.
Start by assessing your income. Then consider liabilities like student loans, credit card balances and auto loans. Ideally, the amount of your monthly debt payments, including your proposed mortgage payment, should be equal to or less than 36% of your gross monthly income. And remember to budget for a down payment (typically 5% to 20% of the purchase price) and closing costs (usually estimated at 3% to 5% of the purchase price).
Calculate: Home Affordability
PRICE OF YOUR HOME
Calculate your monthly payment.
Your monthly mortgage payment will depend on the amount you need to borrow, your annual property taxes and insurance and your locked-in interest rate.
Interest Rate
This is the mortgage interest rate you'll be paying. Explore different rates to see how your home price is affected.
This is the mortgage interest rate you'll be paying. Explore different rates to see how your home price is affected.
Legal Disclosure
The accuracy of this calculator is not guaranteed by any party and is intended for educational purposes only. The calculator displayed does not constitute the advice of, or reflect actual products, services, rates and/or terms available from, PNC Bank or its affiliates and nothing contained in the calculator shall constitute an offer or solicitation of a product or service by PNC Bank or its affiliates.
The accuracy of this calculator is not guaranteed by any party and is intended for educational purposes only. The calculator displayed does not constitute the advice of, or reflect actual products, services, rates and/or terms available from, PNC Bank or its affiliates and nothing contained in the calculator shall constitute an offer or solicitation of a product or service by PNC Bank or its affiliates.
About Down Payments
The bigger the down payment, the lower your monthly payments will be.
For many people, saving for a down payment is one of the most challenging parts of the home buying process.
Many loans require a down payment of 5% to 20% of the price of the home—which can be a big chunk of change. But having a sizeable down payment does have benefits:
- The more you put down, the lower your monthly mortgage payment will be.
- If you have a 20% down, you won’t need Private Mortgage Insurance (PMI).
- A bigger down payment could help you qualify for a lower mortgage rate.
Set a down payment savings goal.
Before you know how much you need to save, think realistically about how much you’ll be spending on your home purchase. If you don’t have a price range in mind, get pre-approved or use our affordability calculator to determine a reasonable range. Once you’ve got your number, set your sights on saving 5% to 20% of that amount.
Put time on your side.
If you’re not looking to buy immediately, you can break your savings goal down into more manageable monthly amounts. If you need to save $10,000 and want to buy in about a year, you’ll need to save about $840 a month.
About Closing Costs
The closing is the final step in the home buying process. Make sure you’re prepared to pay closing costs, which can be up to 3% - 5% of the purchase price.
Within 3 business days of your complete application, the lender will provide a Loan Estimate that details the fees, charges and other costs you can expect to pay beyond the sale price of your home. Closing costs typically include:
- Origination Fees - These are the lender’s charges for processing your mortgage.
- Settlement Services - These charges cover expenses paid to other parties on your behalf, including fees for appraisals, title search, credit reports, document recording, inspections and conveyance taxes.
- Property Insurance - Your loan approval conditions will require you to prepay for the purchase of one year of insurance coverage to protect your new home.
- Interest Prepayment - If you close a loan before the end of the month, the lender will require you to prepay interest on the loan for the number of days remaining in the month.
- Tax & Insurance Escrow Deposits - If required by your loan approval terms, you’ll have to make initial deposits into your escrow account to pay for real estate taxes and homeowner’s insurance.
- Mortgage Insurance - If you put less than 20% for a down payment, you may be required to have mortgage insurance and make an initial mortgage insurance payment at closing.
- Discount Points - Sometimes, you can obtain a lower interest rate by paying points to your lender. A point represents 1% of the loan amount.
Insurance 101
Buying a home is one of the biggest financial investments you’ll ever make. Get covered for the unexpected.
Insurance 101:
Homeowner’s Insurance
Homeowner’s insurance provides financial coverage in the event of a covered loss to your home, other structures or contents. In addition, homeowners insurance provides personal liability coverage for third-party claims.
Disaster Insurance
Insurance designed to protect your home in the event a natural disaster such as fire, flood, earthquake, hurricane or tornado were to strike and cause your home to become unlivable.
Mortgage Life Insurance & Mortgage Accidental Death Insurance
Mortgage life insurance pays off or reduces your mortgage loan balance (up to the policy maximum) in the event of death before the debt is paid, enabling surviving family members to retain their home. Mortgage accidental death insurance pays off or reduces your mortgage loan balance (up to the policy maximum) if your death is the result of a covered accident.
Private Mortgage Insurance
Insurance written by a private company to protect the mortgage lender against financial loss if a borrower defaults on the mortgage.
FHA Mortgage Insurance
An undertaking by the Federal Housing Administration (FHA) to insure the lender against loss if the borrower defaults on the mortgage.
VA Funding Fee
This fee is paid by the Veteran and/or third party, directly to the Veterans Administration, to guarantee a specified portion of the loan, should the borrower go into default.
Flood Insurance
Protection against flood loss through the 1973 Flood Disaster Protection Act.
The Application Process
PNC and your mortgage loan officer have the tools and insight to help guide you through the mortgage application process.
The Mortgage Application Process
1. Choose a Loan
Consult with a Mortgage Loan Officer to determine which loan best fits your budget.
2. Confirm Your Interest Rate
Decide if you want to lock in your interest rate.
3. Get a Loan Estimate
We’ll send you a Loan Estimate outlining the terms. If everything is in order, you can let us know you are ready to proceed.
4. Meet Your PNC Team
Your PNC Team will work with you to verify your income and assets, while also arranging your property appraisal.
5. Schedule a Closing
When everything is approved, your PNC Team will call you to schedule a closing.
Mortgage Application Checklist
Mortgage Application Checklist
Use this list to gather what you need to apply for a home loan.
To apply for a home loan, you’ll need to provide information about your income, assets and debts, plus any circumstances that may impact your ability to repay.
Be prepared to provide some or all of the items below:
INCOME VERIFICATION
- Pay stubs for the last 30 days
- W-2 forms for the last two years
- Child support/alimony - Child support agreement and/or divorce decree and/or 12 months
- Award letter/1099 for social security, pension and disability
IF YOU ARE SELF-EMPLOYED
- Signed, completed tax returns for the past two years, including personal, partnership, and corporate, if applicable, including all schedules.
- Year-to-date business profit and loss statement for current year, if more than three months have passed since the end of the tax year
- Current balance sheet
ASSETS: SOURCES OF FUNDS/DOWN PAYMENT
- Original bank statements for the last three months, including savings, checking, and investment accounts
- Stocks and securities account statements for the last three months
- Closing Disclosure or Listing Agreement if using funds from the sale of property
- Sale of asset – proof of ownership, proof of sale, and proof of funds transfer
- For gift funds – a gift letter, evidence of transfer, and sometimes evidence of withdrawal
PAYMENT HISTORY
- Cancelled rent or mortgage payment checks for the past 12 months, if not available on credit report
- Copy of land contract, if applicable
- Child support/alimony
- Bankruptcy/Consumer Credit, if applicable
ADDITIONAL INFORMATION, IF APPLICABLE
- Purchase agreement, including legal property descriptions and any addendum
- Explanation of discrepancies on credit
Calculate: What Will My Estimated Payments Be?
ESTIMATED MONTHLY MORTGAGE PAYMENT
What will my estimated payments be?
Your monthly mortgage payment will depend on the amount you need to borrow, your locked-in rate and other factors.
Interest Rate
Interest rates can vary based on the type of loan, your credit score, the amount of equity you have in your home and other factors.
Interest rates can vary based on the type of loan, your credit score, the amount of equity you have in your home and other factors.
Legal Disclosure
Mortgage rates are subject to change without notice at any time until you have locked in a loan. Actual rate and payment will vary based on your specific situation.
The accuracy of this calculator is not guaranteed by any party and is intended for educational purposes only. The calculator displayed does not constitute the advice of, or reflect actual products, services, rates and/or terms available from, PNC Bank or its affiliates and nothing contained in the calculator shall constitute an offer or solicitation of a product or service by PNC Bank or its affiliates.
Mortgage rates are subject to change without notice at any time until you have locked in a loan. Actual rate and payment will vary based on your specific situation.
The accuracy of this calculator is not guaranteed by any party and is intended for educational purposes only. The calculator displayed does not constitute the advice of, or reflect actual products, services, rates and/or terms available from, PNC Bank or its affiliates and nothing contained in the calculator shall constitute an offer or solicitation of a product or service by PNC Bank or its affiliates.
Home Insight Planner
The Perfect Home Starts with the Perfect Plan
Find the home that fits you and your budget. Determine a mortgage payment that you can afford, based on your actual budget and lifestyle. Then start shopping for homes with real‐time rates and loan products.
The Home Insight® Planner can help you:
- Generate home affordability scenarios based on your actual budget information.
- Get a clear view of your spending habits and adjust your expenses so you can find a home payment that works for you.
- Search for homes within your budget and save the ones you like as part of your customized home affordability summary.
- See real-time mortgage rates and learn which mortgage products can make homeownership a reality
Ready to Get Started? Let's Talk
Discuss your preferences, learn more about your loan options.
Online:
Provide some preliminary information to begin the loan process today!
With a Loan Officer:
We are available at branches nationwide to discuss your preferences, learn about your loan options, and see if you're pre-approved.
Important Legal Disclosures and Information
Preapproval is not a commitment to lend, a condition of loan approval or an application for credit.
Final loan approval and amount are subject to verification of loan data, property appraisal and underwriting conditions.
PNC, PNC HomeHQ, PNC Home Insight and Home Insight are registered service marks of The PNC Financial Services Group, Inc. ("PNC"). PNC has a pending patent application directed at various features and functions of Home Insight® and Home Insight® Planner. All loans are provided by PNC Bank, National Association, a subsidiary of PNC, and are subject to credit approval and property appraisal.
©2023 The PNC Financial Services Group, Inc. All rights reserved.
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