A mortgage is a loan used explicitly for purchasing a property, where the property itself serves as collateral for the loan. It is a financial agreement between a borrower and a lender, typically a bank or mortgage company.
Mortgages play a crucial role in achieving the significance of homeownership. With the help of mortgage loans, individuals can realize their dreams of owning a property.
Here is a step-by-step breakdown of the mortgage process in the next slides:
Assessing how much home you can afford before diving into the mortgage loan process is crucial. Rather than focusing on the maximum purchase price, estimating a monthly mortgage payment that fits your budget is advisable.
After estimating your budget, you can look at homes within your price range. Obtain a pre-approval letter from a lender to kickstart the mortgage process.
Once pre-approved, you can start house hunting with your real estate agent. After selecting a home, you’ll make an offer, including contingencies that must be fulfilled for the deal to be finalized.
With a home in mind and an accepted offer, the next step is to finalize your choice of mortgage lender. You can stick with the lender from the pre-approval stage or explore other options.