Once you have gotten through the first step of determining if home ownership is right for you and the second step of finding out if you are financially ready, the final step is financing your home. By now you should have a firm understanding of what amount you are comfortable borrowing based on your financial goals, so now it is time to see if mortgage companies agree with you.
It is now time to meet with a broker to discuss the various options, learn the basic mortgage terms, learn about mortgage loan insurance if your down payment will be less than 20% of the purchase price, and begin the process of getting pre-approved. While a pre-approval is not a guarantee, it does give you the loan amount and interest rate you will most likely qualify for if all the information on your application proves true.
At the BRM Lending Team, we understand that the process of financing your home can feel overwhelming, but we can walk you through the pre-approval stage, so you are one step closer to owning a home. We thoroughly explain how mortgages work, including how mortgage loan insurance is required to protect the lender against the risk of default when you are not putting at least 20% down. If you cannot put this amount down, the more you can put down, the lower the premium will be. We will also go over the different types of interest rates and the difference between conventional and high-ratio mortgages. Contact us today if you are ready to learn more about mortgages and the process of financing your home.