Merriam Webster defines the word mortgage as follows: "a conveyance of or lien against property (as for securing a loan) that becomes void upon payment or performance according to stipulated terms." Essentially, a mortgage is the legal term for when you borrow money from a bank or lender to purchase property. The loan is secured by signing a mortgage note, in which the borrower agrees to the terms of repayment. Mortgage is a French Law term that means "death contract", but their definition of death is a bit less morbid than you'd think. In this case, death refers to the loan only ceasing to be through the obligation being fulfilled or the foreclosure of the home.
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Easy, you just click the button below and apply! You'll need to know some basic information, such as where you work, how much you make, your assets, any debt you have and how much you plan to put down on your home.
This is one of the most commonly asked questions we get here at Coastal Funding. While your loan may take a bit longer to process, the answer is yes! You'll need to engage in a process known as manual underwriting, which is basically just providing some additional information. Not every lender will sign on for this, but many will. This is one of the many situations where having a mortgage broker on your side can make a world of difference.
Prequalification comes after having a chat with your mortgage professional about your income, assets and down payment. Preapproval comes after the information you provided has been verified. While it takes more time to get preapproved than it does prequalified, it also carries more weight.
With conventional loans, there are 3% down payment programs such as HomeReady/HomePossible, while most conventional loan programs require a 5% down payment. FHA loans requires a minimum of 3.5%. Both VA and U.S.D.A. loans offer 100% financing. For all of these loan programs, the initial down payment can be fulfilled by gift funds from a family member.
Those who have 5% of their home's value to put down with credit scores of 660 and above generally go with Convential loan methods, while those with less than a 660 score typically are best suited for a VA, FHA or U.S.D.A. government backed loan.
A high interest rate means not only will your monthly payments be larger, but the overall interest you pay on the life of your loan is as well. Low interest rates save people money both in the short and long term, which is why so many people consider refinancing their mortgages when interest rates are low. Click the button to learn more about refinancing your current home.
Mortgage rates change day to day, so locking yourself in at an advantageous rate is a smart move. Generally speaking, you can lock in your rate as soon as your loan is approved, although many buyers wait until they have found a specific home to purchase and are officially under contract. Any trusted lender will help advise you on your best time to lock in your rates, so make sure to ask!
Mortgage points, sometimes called discount points, are a way to prepay interest in order to achieve a lower interest rate on your mortgage. Every mortgage point is 1% of your loan amount, meaning that if you're getting a $250,000 loan and have two discount points, you would pay $5,000.
Here’s what the typical monthly mortgage payment includes:
For those wishing to pay more on their mortgage, be sure to specify that you want extra money going towards the principal only!
Additional costs like your homeowner's insurance and property taxes may be included in your mortgage payment. Your lender can add the monthly portion of each of those accounts to your mortgage payment. That money is held in an escrow account that is managed by a third party to make sure those costs are paid on time.
On average, homes take about 3-4 weeks to close. Many factors can shorten or lengthen this, from your loan type, finances, and more.
At the very end of your real estate transaction, you will have closing. This is the final signing of everything, and after the event, your new home, and your new mortgage, and now yours. What will you need? Don't worry, you will get a Closing Disclosure three days before which will sum it all up for you.
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