When you’re buying a home, the mortgage you choose matters as much as the property itself. Rates, terms, and requirements can vary from lender to lender—and so can the level of service you receive.
That’s why we believe in offering more than numbers on a page. At Penn Street Mortgage, we guide you through your choices clearly and honestly so you can make confident decisions at every stage.
If you’re looking for a residential mortgage in West Chester, here’s what you need to know to move forward with clarity and purpose.
Know What You Can Afford
Start by understanding your own financial range. This means looking at more than what you qualify for on paper.
We’ll work with you to review your income, current debts, and financial goals to help determine a monthly mortgage payment that fits into your life—not one that stretches it thin.
Lenders often look for housing costs to stay under 30 percent of your monthly income, but that’s only a baseline. Your personal comfort with monthly expenses, savings goals, and other financial commitments should factor in as well.
Understand Your Loan Type Options
There are several loan types available, and we’ll help you figure out which ones make the most sense for your goals. Here are the main options we review with clients:
Conventional Loans
These are issued by private lenders and typically require higher credit scores and a larger down payment. They can offer competitive interest rates, depending on your financial profile.
FHA Loans
Insured by the FHA (Federal Housing Administration), these loans are more flexible when it comes to credit and down payment requirements. They are often a strong option for first-time buyers.
VA Loans
Backed by the Department of Veterans Affairs, these are offered to eligible service members and veterans. They usually don’t require a down payment and have favorable terms.
USDA Loans
These are made for qualifying properties in rural areas and may also offer no-down-payment financing.
If you’re not sure which type fits your profile, we’ll break it down for you during the consultation. There’s no need to take on the process on your own. We’re here to help you compare home loan options based on your finances and long-term plans.
Fixed vs. Adjustable: Understand Your Rate
Mortgage interest rates fall into two categories: fixed and adjustable. Each has its place, depending on how long you plan to stay in the home and how much predictability you want.
Fixed-rate mortgages lock in your interest rate for the full loan term. This can be useful if you’re buying at a time when rates are low or if you plan to stay in the home long term.
Adjustable-rate mortgages (ARMs) start with a fixed rate for a set number of years and then adjust based on market conditions. If you’re planning to move or refinance within that initial fixed period, this may be something to consider.
We’ll explain the differences clearly, without pressure. The goal is to make sure you understand how each rate structure affects your monthly payment now and in the future.
Compare Loan Terms
Loan term refers to how long you’ll be repaying the mortgage. Common terms are 15 or 30 years. A shorter term usually means monthly payments will be higher, but you won’t pay as much in interest over time. A longer term reduces the monthly cost but increases the total interest paid.
Your decision here should align with your income, future plans, and how aggressively you want to build equity. We’ll help you compare these options based on your current situation.
The Role of a Mortgage Broker
We’re often asked why it makes sense to work with a mortgage broker instead of going straight to a bank. The answer is simple: more choice and more personal service.
As brokers, we work with a wide network of lenders. That gives us access to a broader range of loan products and interest rates. We shop on your behalf and keep communication streamlined. You won’t be passed off between departments. You’ll work with one dedicated loan officer—from application through closing.
If you’re searching for a residential mortgage in West Chester, working with our team means you’re not limited to one bank’s options. You’ll see what’s available across the board and have help comparing them side by side.
What About Your Down Payment?
How much you plan to put down affects your loan options and monthly costs. While many people aim for 20 percent, that isn’t always necessary. Some loans require as little as 3 percent—or none at all, depending on eligibility. We’ll go over the trade-offs:
- Lower Down Payment: This may increase your monthly payment and require private mortgage insurance (PMI), but it can get you into a home sooner.
- Higher Down Payment: This can reduce your monthly payment and may improve your loan terms.
The right answer depends on your available savings, income, and homeownership goals. Get expert guidance from the pros at Penn Street Mortgage. Call us today.
Mortgage Preapproval: Why It Matters
Getting preapproved gives you a clear idea of what you can afford and helps you act quickly in a competitive housing market.
We’ll guide you through the process of submitting financial documents, reviewing your credit, and determining the loan amount you’re likely to qualify for.
When you’re preapproved, you’re more than a potential buyer. You’re a serious buyer. That puts you in a stronger position when you’re ready to make an offer.
Contact Us Now If You’re Ready to Talk
Choosing a mortgage doesn’t need to be complicated. When you work with a team that listens, explains, and looks out for your long-term goals, the entire process becomes easier to manage.
If you’re looking for a residential mortgage in West Chester, our team is ready to help you take the next step. Contact Penn Street Mortgage today to schedule a consultation. We’ll take the time to walk you through your options and share mortgage planning advice that works for you—today and long term.