Mortgages

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What Are Mortgages?

A mortgage is a real estate lien on your property, placed by a bank or financial institution, for money that you borrowed from the financial institution in order to pay for the property. When a mortgage has been signed and approved, you will have the obligation to pay back the loan for the property, plus interest, and the financial institution will have the right to foreclose your property if you do not repay the mortgage.

A mortgage transaction involves two documents:  the promissory note and the mortgage (or deed of trust):

Signing the Property Purchase Contract

If you do not have enough cash on hand to pay for the property (most people don't!), you should state in the purchase contract that you would purchase the property contingent on getting a mortgage with a particular interest rate. When the seller accepts the offer, you should apply for a mortgage as soon as possible. Once you qualify for a mortgage, you are bound under the purchase contract to buy the house.

Preparing for a Mortgage Application

Before applying for a mortgage, you should have the following information available:

Mortgage Interest Rates

All mortgages require you to pay interest on the borrowed funds:

Should I Contact an Attorney for Help with a Mortgage Issue?

Buying and financing a piece of real estate can be one of the most important experiences in your life. A  mortgage lawyer can advise you of the different mortgage financing options for this financial endeavor. An attorney can also review any financial documents, and advise you about your obligations and the best way to proceed. Advice from a mortgage attorney may save you money on your loan or refinance.

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Last Modified: 05-27-2014 11:40 AM PDT

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