Do you desire to have your own house? The majority of people resort to a obtaining a mortgage to acquire a property. What then is a mortgage? A Mortgage is a loan that uses an individual’s property, like land, a house, a building or a flat as assurance for the loan. Therefore if you don’t keep up with the monthly installments, the property could be repossessed.
Buying your own property is something that is very exciting, especially if this will be the first time you are acquiring property. However, you can not just dive into it without even understanding what you are going to deal with. Obtaining a mortgage is a lifetime commitment, so you need to decide which is the right mortgage for you.
How to Start
The mortgage process will be quite a long ride. There will be an “adrenaline rush” when you begin the process. You will be tempted to look for the property that you think will be right for you. You need to make sure that you are doing your research, however, because you might make a mistake which can last you a lifetime.
Begin with determining what your housing needs are. Make a realistic estimate in determining how many years you will use the property. Determine your capacity to pay. Then ask for help.
Many resources are available to you, like the use of a real estate agent or government housing agencies, or you can seek advice from friends and family who have already gone through the process of obtaining a mortgage. You should hire a professional, like the people from Life’s Great as they can help you through the tough process. They can help educate you, and with this information, you will begin to understand the home buying process. With this valuable information, you can start to protect yourself from people who only have their interests in mind.
It is important that you shop around. If someone gives a very appealing offer, especially one that seems too good to be true, secure a second opinion. Another piece of important information for you is that you need to make sure that you have a good understanding of prepayment penalties and the additional fees they could add on. Make sure that all your documents are correct and complete. Beware of fixers and con counselors. Work with legitimate experts and advisors only.
Who to deal with In the Mortgage Process
Aside from your trust agent, you will deal with the following people:
- The loan officer. A loan officer will make the decision on whether or not you are qualified to secure a mortgage based on your credit, and your financial and employment information
- The loan processor. He will deal with all the documentation and provides you with all the required documents. He checks whether all documents are correct and intact.
- Mortgage Underwriter. He determines your eligibility to secure a mortgage. Otherwise, he requires you to have a co-borrower. Upon checking all the necessary documents, he either approves or rejects your application.
- Real Estate Appraiser. He will check the properties nearby and then determines the fair market value of the property.
After a very long and tedious process, you will be informed by the financial service representative that your mortgage is approved. The approval of your mortgage is just the beginning of your responsibilities. Upon signing, you agreed to do your part, which is to pay without fail, the monthly mortgage payment, and in that way, you will keep your home.