Have you ever dreamed of having a house near the bay where you could sit on the deck, unbend and watch the sunset without worrying about the rent? I have. We all have versions of our American dream. Perhaps one of the popular things we aspire the most in life is buying our own home. Sure, buying one wouldn’t be easy, but there is a viable option that could help you do just that – home mortgage. Today, there are two types of mortgages – conventional and insured. The Federal Reserve Board states that Mortgage loans that are not insured by the government are called conventional loans.
Lower down payment requirements are usually under Insured mortgages that make them seem to be more attractive. However, Insured mortgages may be more restrictive in other ways. Aside from being very selective, loans may only be available to properties whose value is below specified price. The length of the loan and the down payment required by the lender are one of the most crucial factors on making a decision. Your monthly due is dependent on your chosen payment scheme as how your down payment would define at what rate of interest you are going to pay. A significant paperwork is required for home mortgage.
According to Federal Reserve Board, you have to secure the application form, which asks for detailed information about you, your employment record and the house you want to purchase. Once filled out, you will then have to answer credit inquiries about your personal finances that in return, help gauge your willingness and ability to pay the mortgage. It must be remembered that your finances need to be in good credit standing to obtain mortgage. The value of your desired property and your financial condition plays an important role in determining the maximum loan amount that the lender could provide you.
All in all, I know getting a loan isn’t just a walk in the park. Much attention should be given in order to come up with a fair and just mortgage that best suits your financial status. So with these in mind, I hope all of us are now more knowledgably “equipped” in fulfilling our own American dream. United States Federal Reserved Board, (n,d).
Home Mortgages: Understanding the Process and Your Right to Fair Lending Retrieved June 21, 2001 from http://www. federalreserve. gov/Pubs/mortgage/morbro. HTMSample Essay of UkEssays