Have a look at the presentation on mortgage loan, mortgage process and mortgage types.

2. What is a mortgage loan?




A loan secured by real
property such as land,
home etc.
This is used to make large
real estate purchase.
The borrower has to repay
the loan over a period of time,
along with the interest.
Once the loan is paid off in
full along with the interest, the
borrower becomes the owner
of the property.

3. Mortgage Loan Process



Pre-qualification
Apply for a mortgage
loan
The processing of loan
application

Home appraisal

Underwriting

Loan closing

4. Pre-qualification




This is the initial step in mortgage loan process.
You supply information on your income, debts and
assets to a lender.
This can be done over phone or through internet.
After reviewing your information, the lender gives
you an idea of the mortgage amount that you can
qualify.

Lender does not pull your credit report.

Getting pre-qualified does not ensure mortgage loan.

6. The Processing of Loan Application
These documents are required for mortgage loan processing.

Last 2 pay check stubs

Last 2 W-2 forms

Last 2 bank statements

Other documents as
may be required by
the lender.

9. Loan Closing



This is the last step in
getting a mortgage
loan.
You sign the loan
contract.
You have a number of
closing fees.

11. Fixed Rate Mortgage



Interest rate remains fixed
for the entire term of the
loan.
Monthly payment amount
remains fixed for the entire
term of the loan.
Examples – 5-year fixed
rate mortgage, 30-year
fixed rate mortgage etc.

12. Adjustable Rate Mortgage





Rate of interest remains fixed for an initial
period of time.
Once that initial period is over, rate varies
with some benchmark index.
The benchmark index may be – LIBOR,
COFI, US Treasury bond rate etc.
The monthly payment remains fixed in the
initial period. Thereafter, it varies.
Examples–2/28,
3/27
adjustable
rate
mortgages. In 2/28 mortgage, the initial
interest rate is fixed for a period of two years
and then it varies for the remaining 28 years
of the mortgage. Same intepretation holds for
3/27 adjustable rate mortgage.

16. MortgageFit
For more information on mortgage
Contact us at (800) 969-6348
Send mails at sam@mortgagefit.com
Find us on: