Buyer's Guides: Financing

How to decide on a mortgage to buy your new home

When you apply:

When you apply for a mortgage, have the following items available for each borrower:

  • Two most recent pay stubs

  • Summary of current debt (credit cards, loans, child support, etc)

  • W-2s for the last two years

  • Federal tax returns for the last two years

  • Last two months’ bank statements

After you are preapproved for a mortgage, it’s time to decide on a mortgage type. There are many types of mortgages, and choosing the right one for you is an important decision. The two most common mortgages are a Fixed Rate Mortgage and an Adjustable Rate Mortgage (ARM). If you are interested in exploring additional mortgage programs, talk to a local mortgage professional.

Fixed Rate Mortgage

A fixed rate mortgage loan is one where the interest rate remains the same for the entire loan term. Typical loan periods are 15 to 30 years. This means the principal and interest will never change and your payments are the same, which can help with managing your monthly budget. Interest rates are usually higher with fixed rate mortgages.


Adjustable Rate Mortgage

An adjustable rate mortgage is based on the financial index and can go up or down based on the market conditions. Monthly payments will change over the span of the loan, however the is typically a cap on the interest rate that protects the buyer from an unreasonably high rate. The advantage of an Adjustable Rate Mortgage is that it offers lower initial payments, making it easier for buyers to qualify.




Mill Creek Office

15117 Main St. B106

Mill Creek, WA 98012


Everett Office

1728 W. Marine View Drive

Ste. 221 

Everett, WA 98201



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