When you’re ready to buy a home, one of the first things you’ll need to do is get a mortgage. A mortgage is a loan that allows you to borrow money to buy a property and then pay it back over a set period, usually between 25 and 30 years.
The amount you can borrow will depend on your income and the value of the property, but you’ll typically need to put down a deposit of at least 5% of the property value.
The mortgage process to follow
The first step in getting a mortgage is to find a lender that’s willing to give you a loan. You can do this by going to your local bank or credit union, or by searching online.
Once you’ve found a lender, you’ll need to fill out an application and provide them with information about your income, debts, and assets. The lender will then use this information to decide how much they’re willing to lend you.
After you’ve been approved for a loan, you’ll need to get a mortgage rate lock. This is a commitment from the lender to give you a certain interest rate for a set period of time, usually 60 to 90 days.
Once you have a mortgage rate lock, you’ll need to find a property to purchase. Once you’ve found a property, you’ll need to make an offer and negotiate the purchase price with the seller.
If your offer is accepted, you’ll need to get a home appraisal to make sure the property is worth the price you’re paying. Once the appraisal is complete, you’ll need to get a loan commitment from the lender.
Once you have a loan commitment, you’ll need to sign a purchase agreement and close on the property. At closing, you’ll pay the remaining balance of the purchase price, as well as any closing costs.
After you’ve closed on the property, you’ll need to make your first mortgage payment. You’ll make regular payments to the lender every month, and the loan will be paid off over the course of the loan term.