Are you considering on getting a mortgage but is hesitant because you lack knowledge of the process? Worry no more, because this article is beginner-friendly and will offer you everything you need to know about mortgages.

WHAT IS A MORTGAGE?

Getting a mortgage is an option for those who wants to buy a real estate, for example a house, but lack funds to do so. You take a mortgage loan to get your dream house and you pay the loan with an interest over a period of several years. Failure to do so will result in the property being seized by your lender because the property will serve as the collateral to secure your loan.

HOW TO GET A MORTGAGE?

1. MORTGAGE PREAPPROVAL

The first thing you need to do is go to a mortgage lender and apply for the loan. You have to know how much money the lender is able to lend you so you will have a budget to work on in choosing your real estate. The lender will then check your bank statements, current employment, your assets and credits to know how much to lend you.

2. GET APPROVAL LETTER

Approval letter is given if you are qualified for the loan and will signal you to start your search for a property you want to buy.

3. MAKE AN OFFER

Find a credible and reliable real estate agent to give you the best option that will satisfy your likings and your tight budget and then make an offer for the property.

4. VERIFICATION PROCESS

You will need documents that will backup the information you provided to your mortgage lender for the verification process. They will also ask for information regarding your property so prepare the necessary documents for that as well. After that, you will be given a document called Closing Disclosure that contains everything you need to know about your loan such as interest rates , monthly payments and down-payments.

5. CLOSING MEETING

This will be done after your loan gets approved. You only need to sign the loan for you to officially become a homeowner.

Goodluck future homeowners!