Getting A Mortgage Easily
It is not always easy to waltz into bank and get a mortgage for some new property or home
. There are three distinct phases to getting a mortgage that you should learn about and practice as you go about getting your home. Let's see what these three steps are to getting a mortgage:
First you need to lay your foundation. You need to assess your finances, your credit score and your ability to pay for a down payment plus the monthly mortgage payments. Find out how much money you can pay for the property. Next you need to shop for a home that fits your needs and the needs of your finances. This will give the bank a chance to see what it is you are trying to purchase and is the first step toward getting a mortgage. Your mortgage will probably be a thirty year loan and you must not forget that, until you pay off the mortgage, the bank is the one who owns the property.
When getting a mortgage, you need to understand that there are several different types of mortgages. There are fixed year mortgages that last anywhere from fifteen years to thirty years and you pay a fixed interest rate to have the property. There are adjustable rate mortgages that follow the market interest rates to determine the amount of monthly payment you make. There are sub-prime mortgages for people with bad credit. Some mortgages offer a balloon payment after a certain number of years. These are tricky because you have to be able to predict you'll have the money to pay for the balloon payment.
In step two, you secure your mortgage loan. Getting a mortgage isn't difficult if you make a decent salary and have a good credit rating. There is a lot of paperwork to getting a loan from a bank. You must examine your credit history for errors and make sure you have the credit rating for a good mortgage loan. You must get an appraisal on the property to see how much you are going to offer for the home. This determines the amount of mortgage you will apply for as well. Once you have secured the property and signed an agreement, you need to be getting a mortgage for that property. Shop around for the best mortgage rates available to you.
After you have secured your home and applied for a mortgage, there is a lot of paperwork to fill out and you must be able to close the mortgage deal. This involves setting a closing date and closing the deal with the bank and the previous homeowners. The papers are signed and the money is exchanged between the bank and the previous homeowner. You now become the homeowner of the new property.
Getting a mortgage can be made easier if you have the help of the realtor. They often know banks who are willing to lend you money or know of other lenders that can help you. They know if you qualify for a FHA loan and roughly how much you'll have to spend in mortgage costs. If you trust your realtor, you will get a lot of valuable information on getting a mortgage.
by: Gary Hall
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