Archive for Mortgage Guide

It is easy to become overwhelmed at the mere thought of acquiring a mortgage, let alone all of the processes involved in doing so. Getting a mortgage is a long term financial investment, so it is very important that every area is covered - because the decisions that you make today in regards to a mortgage, well, you will be living with them for many years to come. Please remember that we are here to help you, to answer any questions that you may have, and we are available at your convenience.

We have put together this series of facts and common questions to help educate you with the mortgage process.
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1) Prepare your documents and finances

The first step is to obtain and review your credit report. You can receive a free credit report by visiting annualcreditreport.com and requesting it from any of the major credit bureaus; Experian, Equifax or Transunion. Your credit report will be used by your lender as a reflection on how you have managed your finances in the past and how you manage them presently. If you have a good credit rating, this gives you added leverage when negotiating the terms of your loan. It is important to review your credit report for errors as it is fairly common to have some on your credit report. If you find any errors, try and get them addressed before working out the terms of the loan.
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Acceleration Clause - A provision in a mortgage contract that gives the lender the right to demand the entire outstanding balance of a loan if a monthly payment is missed.

Adjustment Interval - with an adjustable rate mortgage (ARM) it is the time between changes of the interest rate and/or monthly payment.

Adjustable Rate Mortgage (ARM) - A mortgage loan in which the interest rate and/or the payment can change periodically over the life of the loan. These changes are usually subject to a predetermined cap.

Amortization – The payment of a mortgage loan through monthly installments of the principal, interest and any escrow amount.

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