James Mariano

Getting a mortgage

Here's a Step by Step guide on getting a mortgage:

1. Mortgage Application- Before you filled out an application, its best to first assess yourself financially. Figure out how much money you have and how much money you need to borrow. It's always critical to know how much you can afford so when you apply for a mortagage you will be able to financially sustain yourself. And when your ready, set an appoint with a Mortagage Specialist, ask questions and best options for you. The mortgage application process will begin by verifying the information you have provided.

2. Choose the best Mortgage Program- You have to pick which loan is more aligned with your financial situation and goals. Here are options of basic loans you can choose from:

A. Fixed Rate Mortgage-has a term of 1 to 10 years. Interest rates and monthly payments will remain the same for the specified term.

This type of loan should appeal to you if you:

Plan to live in the home for more than 5 years
Like the stability of a fixed interest payment
Think your income and spending will stay the same
Don’t like the risk of having a higher monthly payment

B. Variable Rate Morgage-lasts for 3-5 years. But during these terms, the interest rate on the loan can go up or

down which means monthly payments can increase or decrease.

This type of loan should appeal to you if you:

Plan to say in your home for less than 5 years
Don’t mind having your monthly payment increase or decrease
Are comfortable with risk of possible payment increases in the future
Think your income will probably increase in the future

3. Submission and Approval- once you selected the appropriate mortgage program, you will submit this information to your mortgage associate along with any other required documentation. You will then wait for the mortgage approval from the mortgage associate. After the approval, the associate will also review your commitment to the mortgage. Any additional documents that are required by the lender should be sent to the associate within a specified number of days.

4. Lawyer-The associate will send the mortgage instructions to your lawyer to review and sign the documents. First you will review all the terms and conditions prior to signing to make sure the interest rate and loan terms are what were promised. Double check to see that the names and address are correctly spelled on the documents. Signing takes place in front of a notary public or lawyer. There will be several fees with obtaining a mortgage and transferring property ownership which will be paid at closing. Bring a bank draft check for the down payment and closing costs if required. You will also need to show homeowners insurance policy and other requirements such as flood or fire insurance and proof of payment.