For most everyday purchases, you pay the sales price in full, and you then own the good outright. Because real estate purchases are so much larger, most people need a mortgage loan to pay for them.
With a mortgage loan, you pay for part of the purchase up front in the form of a down payment, and the lender pays the rest of the purchase price at the time of the sale. You then pay the mortgage lender back in monthly installments, typically over the course of 30 years, although the length of mortgage loans can vary.
A mortgage loan is considered a secured loan because you use the house itself as collateral, meaning the lender can take ownership of the property if mortgage payments aren’t made. This is called foreclosure. Thankfully, the loan process is designed to prevent foreclosures, so it’s important to have a lender you trust by your side on your journey to homeownership.
Are you ready to take the first steps toward owning your own home? Connect with a dedicated mortgage specialist at Keller Mortgage today to get started.
Your loan officer will be able to figure out exactly how much you can afford to spend on a home.
First-time homebuyer fears can range from “I can’t afford to buy a home” to “I can’t buy a home because my credit score is too bad.” While it can be natural to have these thoughts, it’s important to face fears with facts. Let's take affordability, for instance.
In part two, we will explore three more components of the first-time homebuying experience so you can embark on it with ease and confidence. Each magnificent tip below is brought to you courtesy of Your First Home (Second Edition), authored by Gary Keller and Jay Papasan.