Mortgaging for a Property

If you are planning to purchase a home for you and your family, then most probably you would need a home mortgage loan.


A home mortgage loan is a loan from a bank or a private lending/financing company who will pay for the majority of the price of the real estate, around 80% or 90% of it. The balance or the remainder you would have to look for yourself. That is called making a down payment which you could pay either by cash or by cashier’s check.


The bank that loans you the principal amount will expect you to pay every month called an amortization, plus the interest rate that they will place on top of the principal, again this will be paid every month. The common move now is to charge a fixed rate for the borrowers to pay monthly for this will make it easier for them to make adjustments financially than those unfixed loan rates or the adjustable rates which can increase or decrease by the month and can catch the borrower unawares.


To get the right mortgage, you need to check your credit score. Now, in the past, a credit score of less than 700 was not considered a viable score, however, today, more and more lending companies entertain scores lower than 700.

You can request for your credit reports which should give you an idea whether or not you have a chance to apply and be granted a loan. Then there is also the capacity to pay. If the banks or lending companies see that you have the capacity to pay a certain amount monthly, then they would not hesitate to loan you the money.


Once you fill out the application form and you submit it, you will immediately by charged a certain fee, the cost of which will depend on the company policy, which will pay for the costs of investigating into your credit rating and others, this is called the credit investigation. They will not only look at your credit cards, but they will also look to your friends, family, colleagues and employers.


Normally, the whole process will take two to three weeks for completion and then they will communicate with you if you had passed their credit investigation or not. Sometimes, they will be done within a few days once they see that your capacity to pay is unquestionable. Within a month, you may be able to purchase your dream home.