Mortgage 101

Mortgage 101

Since there are so many parts to the mortgage process, we have  organized the most important qualifying steps, lending frequently asked questions, home buying and mortgage processes below.

The information contained in this site could take you awhile to read and digest, so please contact us at any time so we can personally address your questions.

Click on the topic headline to learn more about each section.

1.  Mortgage Basics:

What is a mortgage?

This section highlights some of the topics of interest that will help you get started on your home buying and financing journey.

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2.  The Approval Process:

Down payment, income, employment information, credit and credit score are a few of the important factors lenders look at when considering a borrower for a mortgage loan approval.

There are many questions that are needed to be asked before a pre-approval letter can be issued.  But more importantly, there are several questions that you should be asking your lender before filling out an application.

Being prepared with the proper documents and personal information will speed up the process.

…..read more about (The Approval)

3.  Your Credit:

Your credit plays a key role in the mortgage approval process, and it is essential to understand how credit scores are determined.

You’ll learn the basic rules about preparing your credit standing prior to applying for a loan.

…..read more about (Your Credit)

4.  The Mortgage Payment:

In addition to mortgage rates, there are many other obligations that factor into your overall mortgage payment.

Hazard Insurance, Property Taxes, Homeowner Association Dues, Mortgage Insurance…..etc..

You need to be aware of the expenses involved in order to set proper expectations of what your total monthly payment will be.

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5.  Interest Rates:

Interest rates fluctuate several times a day and are influenced by many factors.

Determining if you’re getting the best deal at any given moment boils down to whether or not you trust that your preferred loan officer is truly looking out for your best interests.

There are economic indicators that impact the typical movement of interest rate markets which your loan officer should be aware of and able to give you advice on. What happens when the “Fed” is moving rates up/down? How do points, no points or no closing costs effect the rate.

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6.   Programs:

There are many mortgage programs designed specifically to help First-Time Homebuyers to get financing.  There are also currently many programs for those looking to refinance, even those homeowners who owe more than the value of their home!

Your experienced loan professional should be able to give you several options in helping you to determine which is the best fit for you!

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7.  Steps in the Home Buying Process:

First you need to decide if renting or owning makes sense for you at this point in your life.  Your mortgage professional can help in that thought process.

What comes first – the approval or the purchase contract? What’s the difference between an appraisal and home inspection?

What are some things specific to condominiums that you absolutely need to be aware of?

There is a lot to know about the home buying process, which is why it is so important to team up with an experienced, knowledgeable mortgage professional.

…..read more about (Steps in the Home Buying Process)

8.  Closing:

The closing process should be a smooth transition from signed documents to closing, if your mortgage professionals are doing their job correctly.

Understanding some of the industry “jargon” will help you avoid feeling confused.

…..read more about (Closing)

9.  Refinance Process:

Properly estimating neighborhood property values and your closing costs will help determine the net benefit of a refinance transaction.  Your mortgage professional should be able to give you an idea right up front as to what your home should approximately appraise for.  They can also figure out what the costs will be and what your monthly savings will be to determine if it makes sense to refinance.

Maybe you are looking to borrower for home improvements or to consolidate some debt.  Either way, it’s importatnt to know your mortgage refinance options.

…..read more about (Refinance Process)

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