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Friday, June 10, 2016

A beginner's guide to mortgages

Mortgage pre-qualification differs from mortgage pre-approval. A pre-qualification is based on credit rating and is an initial step to becoming a homeowner. Mortgage financing application and underwriting often involves extensive financial background investigation and typically requires a downpayment.

Deciding to buy a home is a big commitment and requires a certain amount of income stability and capital to ensure ongoing repayment. Low interest rates, low closing costs and avoiding junk fees are some things to consider. Some government home loan programs assist first-time borrowers secure financing with low downpayment. They also help protect them from predatory lenders, but certain resale restrictions may apply. 

In any case, be sure to research and project financial scenarios in addition to housing market trends, future home expenses and the net benefits of purchasing a mortgage. The following infographic provides some of the key features of mortgages and the basic process associated with acquiring home loan financing.

A Beginnerís Guide to Mortgages
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