You may have settled down, but you're not going to settle when it comes to committing to the largest financial undertaking of your life. But before you get started, do you understand the basics of shopping for a mortgage loan?
An Adjustable Rate Mortgage (ARM) means the payment amount is adjusted on a predetermined schedule to reflect changes in interest rates.
The mortgage banker works for the lending institution that directly loans you the money. A mortgage broker doesn't represent any institution, but shops your loan package around to a number of lenders to get the best deal.
A mortgage company is simply following the law. The APR adds in all loan costs, including points, fees, underwriting and loan document processing, as well as the interest rate you were quoted.
PITI stands for Principal, Interest, Taxes and Insurance. It is the total amount you'll pay every month to the mortgage company.
Joint FICO scores for married couples do not exist.
Your level of education isn't considered. What counts is your employment status, history, job stability and salary.
Federal Housing Administration loans, insured by the Federal Housing Administration, can be obtained for as little as 3.5 percent of the purchase price and you don't need perfect credit. VA loans require no down payment.
However, the mortgage company holds both parties equally and individually responsible for payments. Keep that in mind if your special someone decides to jump ship.
Hey, don't make an offer on that dream house just yet. Stay in that nice apartment a little while longer and brush up on mortgage market basics. Talk to someone in your bank's mortgage department, go online for a comparison shopping test run, and ask your friends to recommend a solid real estate agent.
You're on your way to becoming a savvy home buyer! You know the basics, but just need to research the market a little bit more before doing battle with the bankers. Keep your eyes open and your dukes up, and that next selfie you post will show you standing next to that beautiful "Sold" sign.
Start sorting through paint swatches for that new bathroom. You're ready to be a homeowner! If getting a mortgage were a martial art, you'd be sporting a black belt. Soon, your fingers will be sore from signing contracts and shaking hands with your new neighbors.