If you were to take a quiz on mortgages, what kind of grade would you get? Do you know the difference between P&I and PMI? What are the different companies that offer mortgages? Did you know you’ll likely need to provide 2 years of income verification to get a mortgage? Well, here’s a little Mortgage 101 that just may help you ace that quiz.
What’s included in your payment? There could be several different kinds of payment included in your monthly mortgage. And even more monthly financial obligations could be included as mortgage brokers qualify you for the loan.
There’s more than just the loan payment baked into that monthly mortgage payment. So, let’s talk about what’s actually included: 💰 P&I – principal and interest. Your actual loan payment. 💰PMI – premium mortgage insurance. This could be required by some lenders, especially if you don’t have a 20% down payment. 💰Property Taxes and Homeowner’s Insurance – These also are typically part of the mortgage payment, broken into 12-monthly payments and put into your regular mortgage
Besides the costs above, the lender will factor in other costs like homeowner association (HOA) payments when qualify you for the loan. This is included because it is still a mandatory payment, paid either monthly, quarterly, or annually.
Understanding who you pay what and when goes a long way toward budgeting for your new 🏠.
Where do you get a mortgage? When you need 💰to buy a 🏠, where do you get it? And who helps you?
I’ve helped thousands of would-be homebuyers get the funds needed to buy that dream home and here’s what you need to know to make smart home-buying decisions and here’s how most people finance a home.
Connect with a loan officer, who will ✅ Evaluate your needs and preferences ✅ Give suggested strategies based on credit score and other loan criteria ✅ Work with you to get final loan approval
But where do you find loan officers? • Bank • Mortgage banker (like my company) • Mortgage broker • Credit Union
The right choice will depend on your needs and preferences, which is why it is a good idea to talk to at least two types of mortgage companies.
What documents will you need? As a mortgage lender, this is usually one of the first questions I’m asked. And I half-jokingly answer, “All of them.” 😆
Some loan scenarios need a little and some need a lot.
Documents lenders will request include: • Income – 2-year’s worth • Assets – what you have liquid at the moment and the prior two months • Credit – for a loan estimate we may not have to pull your credit, but we certainly will need it to qualify you for a loan.
Everyone’s documentation needs will be a little different, but for starters you can find a list of commonly needed items on my site. Just click 👉 here.