5 Mortgage Terms Every First-Time Home Buyer Should Know - Drew Mortgage

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• 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.

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• 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.

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• 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 thats 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.

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• Escrow
• Escrow is home buying which starts when a seller
  accepts the buyers 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.

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• 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 propertys value is lower than its
  contract price, the home buyer has all the right
  to negotiate with the seller or cancel the sale.

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• 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.

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• 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!

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DREW MORTGAGE BRANCH OFFICES Drew Mortgage
Associates 196 Boston Turnpike Road, Shrewsbury,
MA 01545 Phone [phone] Peabody
Mortgage Lenders
Boston Mortgage Lenders 1 Mt
Pleasant Drive Peabody, MA 01960
232 Commercial St.Boston, MA
02109 Phone [phone]
Phone
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