If you are a first-time home buyer, the mortgage process may seem a little daunting up front. Even if you have been through this process once or twice, getting approved for a
mortgage isn’t quite like riding a bike, so brushing up on the process might be helpful. To help you get a jumpstart on your research, here are a few commonly asked questions:
What is a mortgage? A mortgage is a type of loan that allows you to buy or refinance a home.
What is a down payment? A down payment is the amount of money you pay upfront when purchasing your home. In most cases a down payment is required, but the amount is typically determined by the cost of the house.
What is an escrow account? Owning a home comes with a few other expenses and responsibilities such as property taxes or homeowners insurance. An escrow account is set up and managed by your lender and acts like a checking account to make payments towards your home.
What are interest rates? There are two types of home loan interest rates: fixed and adjustable. Fixed rates stay the same throughout your entire mortgage, whereas adjustable rates change depending on the market.
Are there different types of home loans? Yes, there are different loans for different situations. If you’re wondering what type of loan is best for you, get in touch and we would be more than happy to walk through your options with you!
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