Does the term "amortization" leave you perplexed? Are you unsure howpreapproval differs from prequalification? If so, you're not alone. Here are some mortgage basics to help you get more familiar with the process.
What's the difference between prequalification and preapproval? Getting prequalified is often the first step when searching for a home. You supply basic financial information, such as your income, assets and debts, to a lender, and the lender then provides a preliminary estimate of the amount for which you may qualify.
Preapproval involves an in-depth look at your finances and usually requires an application fee, but it gets you closer to your potential interest rate and monthly payment. Being preapproved also puts you in a better position in a competitive market because it shows you have your finances in order.
What is amortization? Amortization is the process of paying off a home loan's principal and interest over time within a consistent, planned repayment schedule. In the beginning, a large portion of each payment goes toward interest, but as the loan matures, larger amounts go toward paying down the principal.
What types of loans are there? Fixed andadjustable rate mortgagesoperate as their respective names imply. The former has a rate that stays the same for the life of the loan. The latter's rate may start low, but it can increase after a predetermined period or depending on market conditions.
Government-guaranteed mortgages include FHA and VA loans. These are usually easier to qualify for and typically require lower down payments than other types of loans.
Why are escrow accounts important? Think of them as automated savings plans. Once set up, a portion of your monthly mortgage payment goes into theescrow account. At the end of the year, there should be enough to cover property taxes and insurance.
Author:Will Redondo Phone: 985-264-1824 Dated: September 12th 2017 Views: 323 About Will: ...
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"Super Realtor and Friend…Richie Redondo
I first met Richie back in 2011 when I called to inquire about the possibility of rental/lease management for a house in Mandeville, LA. My family decided to lease the property temporarily after we inherited a lovely house in the Quail Creek Addition. We all lived out of town so we felt that we needed some help whether we were going to lease or sell the property, and I only had 2 weeks in town to get all affairs in order.
Richie came to the house right away, evaluated the property and was able to recommend repairs and improvements that should be made, suggest and justify a fair rental price and explain how the process worked.
The contract for lease that I was to consider was to assist us in screening tenants (background checks, credit rating, income verification, etc.), showing the property and securing deposits. Richie helped me go over expenses for the home like the homeowner’s insurance costs, homeowner association fees, as well as the repairs and work that needed to be considered in order for the house to be leased.
He understood that the house was very sentimental to me and that we were still grieving the loss of our family member. I am sure that he went “above and beyond” the call of duty on that very first day, and he has continued demonstrating that same work ethic ever since. He is a hardworking, family man and it has always been evident to me that family is important to him, whether it was his or mine.
He ended up leasing the house for us 2 times until we finally sold it in April of this year. Both tenants were excellent and the selling process was also seamless due of his efforts and advice. Richie has, on many occasions, done so many extra things for us during the years, from advising me on issues pertaining to leasing the property, inspecting the landscape and contracted labor and even cleaning the house before a new tenant moved in! Since I live in Oklahoma, he has always made sure that everything was acceptable to me and my family, the tenant and eventually the buyer. He earned that sale and has made a lifelong friend in me. I’m sure he is glad that we finally sold that house though! June 2014