Mortgage FAQs

Mortgage FAQ:-  Mortgage is a basically a loan acquired for buying a property or a home which is required to be paid back in a specified time period. The type of loan is given on personal assurance that that you will pay back the amount your have borrowed to buy your home. However, it is important to make sure that you chose the mortgage plan that suits your needs as well a your financial structure.

Here few Mortgage FAQ:-

What are the different types of mortgage loans?

There are various different types of mortgaged loans available for the borrowers. Some of the them includes-

  • Low interest rate mortgage
  • Adjustable rate mortgage
  • Interest only mortgage
  • Assumable mortgage
  • Fixed rate mortgage
  • Reverse mortgage
How to choose a mortgage loan for yourself?

One of the most difficult task while mortgaging is to find the best mortgaging deal from the thousands of different packages. Though there are just slight variations in each one of them and it would be better if you start with deciding the types of mortgage you on’t want. This will help you find the one that suits better with your requirements and abilities.  

What are the documents required for mortgaging?

Traditionally, mortgage loans usually require documents that helps in verifying your employment, income and assets. The documents usually include -

  • Your Social Security number
  • Pay stubs for the last two months
  • W-2 forms for the past two years
  • Bank statements for the past two or three months
  • One to two years of federal tax returns
  • A signed contract of sale (if you've already chosen your new home)
  • Information on current debt, including car loans, student loans and credit cards
Where can I get a mortgage loan?

You can get the mortgaged loan from a bank or any financial institution like a building society or a specialized mortgaged lender. You can apply for direct mortgaged lo9ans, however, it would be better to apply through an independent mortgaged adviser to find you the right deal.

How much deposit do I need for mortgage?

The deposit value for mortgaging requirements depends from lender to lender.  There are some lenders who asks for a 10% deposit or more, and there are some  who tends to save the best rates for borrowers with a deposit of 25%.

How much can I borrow for mortgage?

Most of the lender these days are ready to mortgage the amount three times your salary or two-and-a-half times a joint salary, however how much to mortgage depends on number of other factors. The lenders also consider things such as any income from a second job, bonuses, tax credits and maintenance payments in order to determine borrowers' ability to repay back the loan amount.