Applying for a Mortgage Important Info + 6 Steps
There are many reasons why as a borrower, you would want to apply for a mortgage. The most obvious is that you cannot afford to buy the house in cash and need to make installment payments on it over the next 15 to 30 years.
Even if you are not buying an investment property and could afford to buy the house in cash, there are still valid reasons to apply for a mortgage. For instance, you'll have more cash on hand for other investment opportunities by having a mortgage.
Applying for a Mortgage: Choosing a Fixed or Adjustable Rate
With an adjustable-rate mortgage, your rate starts lower than a fixed rate. It then adjusts based on a predetermined index. Most adjustable-rate mortgages have a few terms:
You might have heard the terms conventional mortgage or conforming mortgage. These terms refer to mortgages that lenders can issue, then package up and sell to another company.
Applying for a Mortgage: Conventional Vs. Portfolio Lenders
Because the prospect of getting a mortgage can be daunting, it helps to break down the process of applying for a mortgage into steps. It is really a process, and each step has a few things that need to be done by you, the borrower.
Getting a property under contract is a prerequisite to moving forward with the lending process because the bank will need to consider the property you are buying.
2. Getting a Property Under Contract
3. Application Filling out this form will probably take about 1-3 hours, depending on how organized you are and if you have all the information needed in front of you.