How to Apply for a Loan
Before jumping into the application process, it is
important that you, the buyer, understands the general timeline for a
loan, the expectations from a lender, and the preparation you should do
prior to applying for a loan.
A mortgage loan will most likely be the largest
debt you will ever incur. Simply put, a mortgage is a loan to finance
the purchase of your home. This is based upon a note that you sign where
you pledge your home as collateral (or guarantee that in the case of
non-payment of the loan the home can be used to repay the debt).
Most mortgage loans these days are amortized over a
period of time. Amortization is the term that refers to a fixed payment
over a period of time which enables the borrower to reduce the debt
gradually through monthly payments of principal and interest. A fixed
rate mortgage, for example, has a set monthly payment while the amount
of interest paid slowly is reduced to $0 by the end of the loan (even
though at the beginning the borrower is generally pay a large portion of
interest).
To begin, select from the following table of
contents:
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