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Well the big moment has finally arrived. You and your spouse have sacrificed, saved, and saved some more, and now it’s finally time to purchase your very first home! This is definitely one of the most important moments in anyone’s life, let alone a young, newly married couple. In order to purchase that first house that you’ve fallen in love with, you’re going to need a mortgage, and that’s where we come in. We are here to provide you with the tips that you need in order secure that first mortgage.
So here’s your first question: Just what is a mortgage?
Basically a mortgage is a large, long-term loan that you receive from a financial institution (that’s a fancy word for a bank) which will give you the necessary funds to purchase your home. Since home prices can range anywhere from $150,000 to $700,000 or more,so for the most of us, we need assistance to afford that hefty price tag. The bank will grant you the necessary money and you’re expected in return to pay off your loan on a monthly basis. Unfortunately if you default on that loan, interest rates and penalties may apply depending on the agreement you reached with the bank.
Okay, so know I know what a mortgage is, how can I go about receiving one?
Honestly, it’s as simple as walking into your local bank and apply for it. More often than not, the bank will call you and your spouse in for an interview to ensure that you both are fit to afford the home (i.e. you having good credit and no severe financial issues). By far, the most important aspect of this whole process is to ensure that your pay your loan on time, because this shows the bank that you’re financially responsible, and that will pay dividends down the road in the event that you apply for another loan down the road to maybe redue a kitchen or put an addition on to the home.
AND THEN, once that’s all set, it’s time for you to stop on by Paradiso Insurance for a Connecticut Homeowners Insurance policy, to insure that you one of the biggest investments of your life is taken care of!