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BEFORE
you go shopping for a home you should review all your
finances. Prepare a list of all your (and your spouse or
significant other) income and expenses. Review this
together and have a good understanding of what buying a home
and paying a mortgage is all about.
If
you rent now, you might not be paying the real estate taxes,
electric, gas or electric heat, sewer, water, garbage
collection, lawn care, maintenance or other expenses typical
with homeownership. Once you own, you typically do. Before
you buy, create a budget for these expenses.
What
is a Mortgage?
A mortgage is a method of using property (real or personal)
as security for the payment of a debt.
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Use the
search box below to find additional mortgage resources
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Example: New
York Mortgage or Home
Equity
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The
term mortgage refers to the legal device used in
securing the property, but it is also commonly used to refer
to the debt secured by the mortgage.
One
of easiest places to begin to get rates is online. You can
quickly compare ADVERTISED rates. Note, however, those rates
often includes teasers, or promotions to lure you in. The
rates may rise after a few months or include other fees. Be
aware!
Just
as quickly as you apply for a mortgage, you may be confused
over all the terms or items that are requested of you. Be
prepared and organized.
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What you will need - On
a typical mortgage, you will need at least 2 years tax
returns, 2 weeks pay stubs, copies of social security
card and drivers license. You will need at least 2 months
bank statements, W-2 Statements or Self Employment
information.
Mortgages
are strongly associated with loans secured on real estate
(like a building or land) rather than other property.
Arranging a mortgage is seen as the standard method by which
individuals or businesses can purchase residential or
commercial real estate without the need to pay the full
value immediately. It is amortized over the term of the
loan.
Each month you (the borrower) pays back a portion of the
original loan plus the interest on the money that is remains
outstanding (typically).
If
you already own a home, then visit our guides to refinance
or home
equity. Also learn what and how to remove or
avoid Private
Mortgage Insurance (PMI). |
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For
additional information on the home buying process, see
our Home Buying Guide with information on How to
Buy a Home including what to look for from Home
Inspections to Getting a Mortgage. |
