→Mortgage (aka Deed of Trust) --
A pledge of real property as security for the payment of money, the fulfillment
of a contract or the performance of some act. Such agreement can be void upon
successful completion of any of the three. →Principal
-- The principal is simply the sum of money you borrowed to buy your home.
Before the principal is financed you can give the lender a sum of cash called a
down payment to reduce the amount of money that will be financed. →Interest -- Usually expressed
as a percentage called the interest rate, interest is what the lender charges
you to use the money you borrowed. →Taxes -- A forced
contribution of wealth laid upon owner’s of real property to meet the public
needs of government.
*There are various
types of mortgages (i.e. government backed loans such as FHA or VA and
conventional loans) for you to choose from. Determining what your needs are
will help mortgage lenders provide you with options that will help you choose
what is best for you.
→FHA Loan - A government loan product insured by the Federal Housing Administration
established to offer qualified first time home-buyers a lower down payment
option and lower interest rates.
→VA Loan - A government mortgage loan guaranteed by the Veteran's Administration
available to qualifying veterans at 100% financing
→Conventional Loans - Loans that are not insured or guaranteed under any government program.
Obtaining a pre-approval is the first real step in the homebuying
process. Your mortgage lender will use information that you provide about
your credit, income, assets and debts to derive how much mortgage you can
afford.
It serves as a good indication to potential sellers of your creditworthiness
and emphasizes your buying power.
3. By meeting with loan officers in advance and identifying mortgage programs, it
won't be necessary to quickly find a lender, check credit, and rush into a financing
decision that may not be the best option.
These days most sellers will NOT accept an offer without a pre-approval
letter, so if you are serious about buying this is the first step towards
getting you in your new home.
5. Starting the process is free! Click on the "Apply Now" link
below and connect with a mortgage consultant who can assist you.
