Mortgage 101 for Summit NJ Real Estate Buyers

By
Real Estate Agent with Kristin Balsley

If you're in the market for Summit NJ real estate, your best bet is to first understand the mortgage market. After all, few of us enough pocket change laying around to cover the entire sticker price of a house, so a consultation with a banker or loan officer will be necessary on some level.

Step 1: Research

The best thing you can do for yourself before you ever start looking at Summit NJ real estate is to investigate the types of mortgages available. A mortgage is simply a loan to pay for a property. Most banks require a twenty percent down payment for a traditional mortgage, but there are many non traditional mortgage products that do not require that sort of down payment. There are two types of interest rates with mortgages - fixed and adjustable. Fixed rate mortgages are just as they sound. The interest rate is locked in for the term of the loan (usually fifteen to thirty years). With an adjustable rate mortgage,  your loan's interest rate can change after any adjustment period (usually one, three, or five years). Learning about the types of mortgages available will help you to talk with your lender in step two.

Step 2: Preapproval

Next, you're ready to talk with a lender in the Summit NJ area about loan preapproval.. You'll submit some documentation to the lender - your recent W-2 statements, pay stubs, and bank statements - and he'll let you know the amounts and types of loans you qualify for. Starting with the preapproval step is a good idea because you can avoid the hassle of finding your dream home only to get denied for the mortgage you need to pay for it.

Step 3: Locate your dream home

Once you have preapproval, you're ready to contact a Summit NJ real estate agent like Kristen Balsley to help you find the home of your dreams. Using a real estate agent like Kristen means a wealth of choices within your specifications and your price range.

Step 4: Signing the Paperwork

The final step in this process is handling the paperwork associated with the purchase of your home and with the mortgage. You'll make a final loan selection with your lender, and he'll offer you a Good Faith Estimate of the closing costs. Meanwhile, expect to be signing sales contracts and arranging closing dates with your Summit NJ real estate agent. Once the paperwork is complete on both sides, you'll be a Summit NJ home owner.

If you'd like more information on Summit NJ real estate or the mortgage process, please take a moment to contact Kristin Balsley today.

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