A brief list of how to approach financing for a new home, including who to speak to about a mortgage loan.

1. How to Approach
Financing for a New
Home Purchase

2. What Is a Mortgage?
•
A mortgage is a loan that is secured by physical
property and is paid to the lender over a
determined period of time.
•
A secured loan means that the lender is
protected by the specified property and can
take ownership of the property if the loan is
not paid.
•
There are different types of mortgage programs
available.

3. Mortgage Approval
•
Before you can obtain a loan to buy a new
house, you must be approved. While different
lenders tend to have different sets of guidelines
that you must meet to be approved, an Arizona
mortgage broker will look at your credit habits,
yearly income, employment history and assets.
•
The home must also meet certain standards in
order for the buyer to obtain a loan.

4. Mortgage Payments
•
Your Arizona mortgage loan will be a 15 -or-30year fixed rate loan. A principal (a down
payment towards the amount borrowed) and
interest (which varies) will be considered and
included for each payment you make. The
amount paid interest will generally decrease
each month and the amount towards the
principal increases.
•
When approaching financing for a new home, be
sure to understand that there are many
payment plans and each has a different longterm impact.

5. Mortgage Programs
•
There are many mortgage programs available,
and an Arizona mortgage lender can explain
what your options are.
•
Different options can vary according to your
down payment or budget.
•
FHA and VA loans may also be available.

6. Closing Costs/Fees
• Mortgage loan costs depend on many
factors. Sometimes, there may be additional
loan processing or underwriting fees.
• There are many government consumer
protection policies in place to help you
understand your options during the
process.
• Other fees that are out-of-pocket can
involve appraisal fees, insurance, interest,
inspections, etc.

7. Mortgage Rates
• Arizona home loan rates can change
throughout the day, but there are always
factors you can pay attention to.Your
mortgage lender can detail these.
• The above information is good to keep in
mind when shopping around for mortgage
rates, understanding loan options and
before meeting with a mortgage lender.