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5 Mortgage Terms Every First-Time Home Buyer Should Know -Drew Mortgage

Buying a home for the first time comes with happiness and challenges. Most first-time homebuyers remain clueless about the common mortgage terms and make wrong decisions In this presentation, Drew Mortgage, mortgage lenders in Massachusetts, has shared the top 5 terms first-time homebuyers should know. Read now!<br>https://www.drewmortgage.com/5-mortgage-terms-every-first-time-home-buyer-should-know/

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5 Mortgage Terms Every First-Time Home Buyer Should Know -Drew Mortgage

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  1. Introduction • Most home buyers find the process overwhelming. • They are often unaware of the mortgage and real estate terms. • Most first-time homebuyers rely on their real estate agents. • Mortgage lenders in Massachusettsknow the homebuyers’ challenges. • Check the 5 mortgage terms to have a good home buying experience.

  2. Pre Approval • The first smart step towards buying a home begins with Pre Approval. When homebuyers want prequalifying before starting the home search, they apply for mortgage pre-approval. • This process helps home buyers to decide their budget. • Mortgage lenders in MA ask for documents such as: • proof of income, credit history, bank statements, employment history, key assets, and more. • Pre Approval solves most of the questions in the mind of a home buyer. • The pre-approved loan may help you prove your financial means and interest in home buying to sellers.

  3. Pending • Property on sale often has multiple interested buyers. • Seller receives offers from several buyers, making different offers. • Once the buyer is final, the property is called pending, indicating the selling process has begun. • If you like a home that’s pending, you could talk to your real estate agent and make a backup contract on the home. • This way, you will be ready to buy it in case the current buyer falls through.

  4. Escrow • Escrow is home buying which starts when a seller accepts the buyer’s offer and initiates the purchase agreement. • At the time of the agreement, the buyer makes an escrow deposit that compensates the seller if the purchase agreement falls through. • After closing the home, this deposited money can be used to fund closing costs. • To be on the safer side, this deposit is done in a third-party company account until closing. • These funds can also help you pay insurance premiums, property taxes, and related homeownership costs.

  5. Appraisal • As you take the first step towards the closing process, you need to order an appraisal. • Your mortgage lender would typically order an appraisal to determine the true market value of your chosen property. • The market value and sales value may differ. • An appraiser visits the property and assesses the condition, location, amenities, acreage, and related factors. • If the property’s value is lower than its contract price, the home buyer has all the right to negotiate with the seller or cancel the sale.

  6. Down Payment • Home buyers are required to make a certain percentage of home value upon closing. • This amount is called the Down Payment. • This percentage ensures that you own a certain percentage of your home upon payment. • It also depends upon the type of mortgage you are eligible for. • FDHA, VA loans have down payment options as low as 3%. • Check mortgage eligibility in advance to save down payment funds.

  7. Conclusion • Home buying is not easy as we all know. • Unawareness of the mortgage terms makes it more challenging. • Drew Mortgage consultants can assist you with mortgage solutions. • Time to get the right guidance & funds for your home buying process. • Get in touch with us today!

  8. DREW MORTGAGE BRANCH OFFICES: Drew Mortgage Associates 196 Boston Turnpike Road, Shrewsbury, MA 01545 Phone: (508) 753-1656 Peabody Mortgage Lenders Boston Mortgage Lenders 1 Mt Pleasant Drive Peabody, MA 01960 232 Commercial St.Boston, MA 02109 Phone : (978) 750-1080 Phone : (617) 523-3060

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