To qualify for a mortgage, most lenders require that you have a debt-to-income ratio of "28/36." That is, no more than 28 percent of all your monthly income (before taxes) can be used for housing, and no more than 36 percent of your monthly income can be used to pay your total monthly debts (including your mortgage payment). They will consider any longer term loans in this calculation (auto loans, student loans, credit cards debts, etc.). It is important to look at what you can realistcally afford, and not to get over-extended or 'house poor'.
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Posted : April 01, 2009 | 
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Steps to Apply for a Mortgage:
A home mortgage is a substantial obligation, and it requires some considerable work and thought. These are the basic steps you can expact:
1. Visit your selected lender and complete a Uniform Residential Loan Application. It requests information about your income, assets, liabilities and a description of the property you want to purchase.
2. The lender will need documentation about your personal finances. You may be requested to provide any or all of the following information; Social Security Number, birth date, recent pay stub showing year-to date earnings, W-2 tax forms and tax returns for the last two years, name, and address, and phone numbers of your employers for the last two years, information about your current loans and charge accounts...Posted : April 01, 2009 | Comments : 0 |
Refinancing Your Mortgage:
Refinancing is getting a new mortgage with all or a portion of the loan used to pay off the original mortgage.
Refinancing can be a good idea for homeowners who want to lower their monthly payments by getting a lower interest rate loan when interest rates drop. You might also want to convert your loan from an adjustable-rate mortgage to a fixed-rate loan so you know exactly what the payment will be for the length of the loan. You might want to build your equity faster by converting to a shorter term loan. You might also need to take some of your home equity out to raise cash for some other need.
...Posted : April 01, 2009 | Comments : 0 |
This site is about mortgages. When we first shopped for a home the mortgage process was a mystery - very frustrating. So when we discovered the domain homemortgagequick.com was available we decided to create a site to help others understand the mortgage process.
Let me say in all honesty that we are in no way involved in the mortgage business - never have been. What we did to produce this site is research numerous sites on the web and hopefully simplified the language used so that it is clear and concise - easy to understand - which will make the mortgage application process easier and quicker.
Posted : April 01, 2009 | Comments : 0 |
What Is a Mortgage?
Not many home buyers have the cash to buy a home, so they borrow money from a lender in the form of a mortgage. A mortgage is a long-term loan from a bank, thrift organization, mortgage broker or a credit union. The house and the land it is built on serve as the collateral for the loan. This means that you agree to forfeit your rights to the property (to the lender) if you are unable to repay the loan according to the agreed-upon terms. Mortgages are a substantial obligation and are usually structured to be paid in monthly payments over a lengthy time period, usually from 15 to 30-years.
The key aspects of a mortgage are:
1. The Principal: The amount of money being borrowed.
2. Interest Amount: The interest amount you pay the lender for the use of th...Posted : April 01, 2009 | Comments : 0 |
Who Gets Involved in the Mortgage Process?
The Buyer and the Seller - the seller is offering the property for sale, and the buyer wishes to purchase the property. These individuals usually work through others to negotiate an agreement to purchase the property.
The Seller - The person or business offering the property for sale.
The Real Estate Agent - Representatives of the buyer and/or seller. They are paid a commission (a percentage of the sales price of the home) for their work in facilitating the sale.
Your insurance agent - your lender will insist that you have the property insured in order to protect them in the event of a fire, flood, or other catastrophy. The lender will have minimum insurance requirements.
Posted : April 01, 2009 | Comments : 0 |
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