If you’re a first-time homebuyer, you may find yourself in need of a mortgage loan. Over 60 percent of homeowners have a mortgage, so becoming familiar with the loan process can be beneficial to your homebuying journey.
A mortgage is a legal agreement between a borrower and a lender where the borrower, once approved for a set amount, pays back the lender over a specified term.
Most mortgage loan terms range from 10 to 30 years, with the 30-year term being the most popular as it often comes with lower monthly payments. However, it’s good to note, the longer you take to pay off the loan, the more money you’ll pay in interest over the lifespan of the loan.
Getting preapproved for a mortgage loan is a great first step, as it allows you to see if you qualify. It also can give you a good idea of the financing you’ll have to work with to purchase a home. During the preapproval process, your lender will collect your financial information to see if you meet their borrowing requirements.
You’ll most likely will need to provide W-2s, tax return info, your credit score and a few other items for preapproval verification.
A mortgage loan is made up of 4 primary components that include the principal, tax, insurance and interest.
The principal amount is the amount of funds still left to pay off the loan, whereas interest is the fee your lender charges for taking out their loan.
Your mortgage provider may also collect property taxes on your behalf through your monthly mortgage payment to be used annually. If you put down less than 20 percent on your home’s down payment, your loan provider may require you to pay for mortgage insurance to protect them if you default on the loan.
Owning a home and paying for a mortgage is a significant commitment, so consider speaking with a lending officer. They can help you explore your options, get a better understanding of the process and find the right loan for your next home purchase.
Dedicated to providing the highest quality service to all Buyers and Sellers
Certified in both Buyer and Seller Brokerage
Skilled in successful client negotiation
Specialist in all areas of Residential Sales Relocation Expert New Construction Specialist Rental Expert Recipient of multiple sales recognition awards
Committed to full service and personal attention Excellent choice as your Realtor®
My goal as a Real Estate professional is to provide the highest level of service for my clients. I feel that it is important to provide an array of information regarding all of your Real Estate needs. You will find on my website a wide selection of inline tools which can be used to provide you with the most current Real Estate information. I am here to help you every step of the way. You can count on me.
I welcome the opportunity to represent you in the sale or purchase of your home.
