Points to keep in mind before Applying Mortgage loan in USA

A  home is a basic necessity  for every person now a days because you always want to live under your own roof and the best benefit of Mortgage loan is that if you have Cash you can keep it in reserve and simply pay the minimum down payment and then start paying remaining amount through easy installment plans as if you are living on rented house you still have to pay it on monthly or yearly basis which will go waste whereas if you have home on mortgage plan then after the given number of year’s the home will be yours. Following are the  Points to keep in mind before Applying Mortgage loan in USA.

  1. Check Your Credit Reports.
  2. Improve Your Credit Score. …
  3. Calculate How Much House You Can Afford.
  4. Decide What Type of Loan You Want.
  5. Get Your Paperwork Together.
  6. Shop Around for the Best Mortgage Rates.
  7. Arrange your latest Salary Slip.
  8. Complete bank statements for all financial accounts, including investments (for the last 2 months)
  9. If self-employed, a copy of most recent quarterly or year-to-date profit/loss statement
  10. A copy of the signed Purchase and Sales Agreement.

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Why it is called Mortgage ?

From where did the word “mortgage” come? The word comes from Old French morgage, literally “dead pledge,” from mort (dead) and gage (pledge). According to the online etymology dictionary, it is so called because the deal dies when the debt is paid or when payment fails.

Tenure for Mortgage Loan ?

Although mostly people select Mortgage over a period of 15 to 20 year’s, but mostly people prefer Mortgage loan for 30 year’s.
Mortgage loan’s can be paid off before the loan maturity date too, suppose if you have the desired amount to pay off your loan well before the maturity date you may by following the set procedure of your Mortgage company or concerned bank from where you have taken loan.

What  happens if you fail to pay Mortgage installments?

Mortgage loans are always secured loan because they are against collateral which the property itself for which you have paid the down payment and further bound to pay the monthly installment’s as per the fixed plan.

But if you fall behind on your mortgage payments, the lender or current owner of the loan (the bank or lending company) is going to start taking steps to collect from you and prevent further losses.
Eventually, if you don’t pay the overdue amounts, the bank will likely initiate a foreclosure but that is after a 120 days time period since your last payment.

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