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! https://www.drewmortgage.com/5-mortgage-terms-every-first-time-home-buyer-should-know/

2. ❏ 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 Massachusetts know the homebuyers’ challenges.
❏ Check the 5 mortgage terms to have a good home buying experience.

3. ❏ 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.

4. ❏ 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.

5. ❏ 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.

6. ❏ 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.

7. ❏ 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.

8. ❏ 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!

9. 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