In simple terms, a mortgage is a loan in which your house functions as the collateral. The bank or mortgage lender loans you a large chunk of money which you must pay back, with interest, over a set period of time. If you fail to pay back the loan, the lender can take your home through a legal process known as foreclosure.
In a recent survey, 52% of homeowners said they were not aware of all the mortgage options available to them when they purchased a home. A knowledgeable mortgage professional will explain the loan process including, but not limited to, the various types of mortgages available, interest rates, the mortgage application, origination fee, closing costs, what is included in your mortgage payment, as well as qualify you for a mortgage and issue a pre-approval letter to help with the buying process. Deltona Realty can recommend several different banks, mortgage lenders and mortgage brokers for you to contact so that the loan process can be fully explained to you.
For first time home buyers, or for a seasoned buyer, usually financing is the manner in which you will close on your home. When considering a mortgage, it is important to know that your credit scores are very important. Credit scores give lenders a fast, objective measurement of your credit risk. Your credit score will also help determine the interest rate you will pay for the mortgage.
Stable income is also important. Lenders look for steady employment with a single employer for the past two years (or at least employment in the same field). Other income such as earnings from a part-time job, may also acceptable if it has a two-year history.
When considering a mortgage, it is important to know that your credit scores are very important. Credit scores give lenders a fast, objective measurement of your credit risk. Credit scores, especially FICO® scores which are the most widely used credit bureau scores, have made big improvements in the credit process.
As explained in “The Buying Process” above, choosing an experienced mortgage lender along with an experienced Realtor® will help you have a smooth home buying experience.