5 Mortgage Terms to Know before buying a House

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Mortgage and Lending with FHA, VA, Jumbo, Downpayment Assistance, Conv. NMLS #276329

 

 

Are you ready to buy a home? Buying a home is one of the most significant financial decisions you'll make in your lifetime. If you're considering purchasing a home in the near future, learn about best practices when applying for a mortgage.

 

I’m here to guide you through every step of the process. Let me know if you have any questions at all.

 

1.Pre-Approval.The lender has checked and reviewed the potential buyer's financial situation and determines how much can be approved to a specific loan amount. 

 

2. Fixed-rate Mortgage. The definition of a fixed-rate mortgage is simply a mortgage with a set interest rate that does not change over the life of the loan. There’s a reason why fixed-rate mortgages are the most popular type of loan – it offers the borrower consistent monthly payments with no surprises. That predictability and stability can be pretty attractive for those who like to stick to a rigid budget.

3.Appraisal-Lenders typically require a professional, independent appraisal of the home you want to buy or refinance. This ensures the value of the property meets the loan guidelines and satisfies all lender requirements.

 

4.Earnest money-it is put down before closing on a house to show you’re serious about purchasing.

 

5.Escrow-ensures buyers and sellers in the real estate process are protected. As a homeowner, it ensures you will be able to pay for your property taxes and insurance. As a seller, it provides a layer of protection for the buyer’s deposit and helps facilitate the technicalities of the transfer of property.

 

Source:

https://fhmtg.com/

 

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Lisa Perry, Senior Loan Officer

"Your Northern VA Mortgage Specialist"

540-273-2733

NMLS ID #86548 / 276329

Email:  LPerry@fhmtg.com

Apply on line:  LisaPerrryLoans.com

 

 

 

 

 

 Proudly Serving Washington DC, Virginia & Maryland

Comments (1)

Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Hi Lisa. Thanks for your good and very readable post to help borrowers out. There are so many terms that people that do not buy homes often are not familiar with. The VA loan is great and still hard to believe one can get a $0 down payment. Why rent? Jeff 😎

Apr 21, 2021 08:35 AM