I think many of you desire to have a house of your own, but you don’t have the necessary amount of money and this fact prevents you from fulfilling your dream. There’s only one way out - a mortgage. It’s a very convenient thing which can help you to stay in your house as soon as possible.
Mortgage is a legal process when a borrower takes a loan to purchase some homes for sale. In this case the property is kept like security during the entire loan.
This procedure involves two parties – a lender and a borrower.
Lenders are usually worried about your incomes and your ability to pay off the debt. To give you a loan they consider your credit score, your monthly incomes and the amount of cash you have to pay the down payment. The higher your score the more chances to have to live in the desired house.
The amount of the loan itself depends on the price of the house and the down payment. The interest rate depends on the credit score, discounts and down payment. So the higher your down payment, the better your credits score the lower rate you are likely to have.
Before you get a loan there’s a process of approval and the closing date is chosen. Then you sign the papers. Also the lender may oblige you to pay for the originating costs and loan processing costs. Property taxes and insurance premiums will be paid as well.
The mortgage is usually paid during a fixed period of time from 10 to 50 years.
While you are repaying the mortgage, the title of ownership of the property still remains with you. But if you fail to pay off, the lender may take away your home. He gets the right to sell off the property in order to get back the loan.
You may qualify for a mortgage with a bank, a credit union or a broker. But in any case it’s better for you to shop and to find the best conditions for you as you want to live in a house of your dream.