Mortgage Basics
A beginnerâs guide to mortgage lingo.
Mortgages 101
What is a mortgage? Itâs a loan for the purpose of buying property that needs to be repaid over a fixed number of years. Mortgages are secured by property. There are different types of mortgages that depend on the requirements of the lender and the needs of the borrower.
Anatomy of a Mortgage
Here are some important mortgage components to understand as you embark on your mortgage journey. If you have any questions, weâre here to help!
Approval
Different lenders and programs have various requirements that you must meet to qualify for a mortgage. These usually include credit, income, employment, and assets â as well as certain standards for the property in question.
Learn MorePayments
Most mortgage payments are made up of principal â the actual amount borrowed â and interest. The amount paid in interest decreases each month as the amount paid towards the principal balance increases.
Programs
Mortgage programs have different qualifying requirements and different costs. Down payments, mortgage insurance, and interest rates vary between them. Federally insured mortgages, such as FHA or VA loans, have more flexible qualifying guidelines.
Learn MoreClosing Costs
A number of fees need to be paid when closing a mortgage. These are for services rendered to obtain the loan and may include property taxes, escrow services, title searches, appraisals and inspections, and mortgage insurance. Depending on the type of loan youâre borrowing, the closing costs may be rolled into the mortgage. By law, the buyer and seller need to know about the closing costs and agree upon it prior to closing the real estate transaction.
Rates
When taking out a mortgage, youâll most likely have a number of interest rate options available. Interest rates change all the time and rates different greatly. Factors that affect interest rate include (but are not limited to) your credit score, the value of your home, and the down payment. Typically, you can get lower rates with mortgage brokers compared to banks and direct lenders. With banks, they usually offer you the maximum loan amount you can be approved for and that could result in higher rates.
Learn MoreMortgage Basics FAQs
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How do I know what kind of mortgage to get?
You can talk to National Home Loans about your unique situation and weâll help you make the right decision.
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What kinds of mortgage programs does National Home Loans offer?
We offer a number of programs from conventional to non-QM and rehab. You can learn more about these here.
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Why should I choose National Home Loans?
Saving you money and guiding you every step of the way are our specialties. Thereâs no âbig bank feelâ with us. We find just the right loan program and the best terms for you. Contact us to learn more about how we can help!
Rated one of the top 100 mortgage brokers in the nation
by the Scotsman Guide
I shopped around a bit for a broker, and was referred to John by a coworker. He was by far the most personable, professional, and proactive broker that I interacted with. He promised me that he was doing everything he could to protect my family's money and get us into a house that we love, and he did. The bottom line is he got us our desired results, he offered great advice, and he earned my trust and confidence. I would recommend his services to anyone looking for a knowledgeable and passionate mortgage broker.
Have been working with John for a couple months now; he is very patient and understands our needs as first time home buyers. John has been amazing and answers all our questions, I think we have found our long time broker. He has the clients best interest in mind which is very refreshing. A++
John is great at what he does, especially for first time homebuyers. He is willing to go the extra mile for his clients and will explain exactly what he's doing along the way. I'm so glad we were able to work with him and I highly recommend him.
Beyond grateful to have been referred to John G. right after getting our offer accepted on a home. We would not have been able to do it without him. He secured us a great rate, which was a game changer in our decision to purchase. It was our first home purchase, and he helped us navigate every single thing, and was extremely responsive and available to chat when we needed him. The entire escrow process was smoother and quicker than we could have ever hoped for. He was a pleasure to work with, and we hope to continue to work with him in the future.
Helping You Find Your Way Home.
Ready for a stress-free mortgage experience? Request rates or contact John today!
