| Introduction
Unless you plan to pay cash for your home, you'll most likely be financing a large portion of the home purchase with a mortgage loan. In short, a mortgage loan is a promissory note between you and a qualified financial institution (lender), with certain binding conditions. The terms of the mortgage typically include principal amount (how much the loan is), interest rate, and maturity date (how long the loan is for). A mortgage loan is usually paid off in monthly installments, much like credit cards and car payments. Depending on the type of mortgage you assume, your monthly payments may be credited towards interest, principal, and even property taxes. The interest on your loan will be largely based on your credit score, but also on the length and terms of the loan itself. The type of loan available to you will depend both on your financial situation and your credit score, but also on the type of property you’re purchasing. It’s best to speak with a mortgage professional who can explain all the ins and outs of the loan process. Before you start the mortgage application process, we recommend that you first review your financial situation and prepare to qualify for a mortgage. This means knowing and understanting your credit worthiness, figuring out what monthly payments you can comfortably make, and determining just how much money you’re ready to put down on the home purchase. When it’s time for you to apply for the loan, we’ll gladly help you get started with the process and put you in contact with a mortgage professional who can find you the right mortgage solution. For more details on mortgages and lenders, please read on. Page 1 of 5 | Next > |
Most homes are purchased with mortgage loans.
It’s a good idea to fully understand your financial situation before starting the mortgage process.