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BEFORE you go home shopping, you should review all your finances. Prepare a
list of all your (and your spouse or significant other) who will be buying this
home income and expenses.
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.
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What is a Mortgage?
A mortgage is a method of using property (real or personal) as security
for the payment of a debt.
The term mortgage refers to the legal device used in securing the
property (ex: a house), 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.
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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.
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. 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 (spread out and paid down) over the term of the loan. The borrower pays
each month, a portion of the original loan plus the interest on the money that
is outstanding (typically). 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.
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