Mortgage Terms in the Southern Ocean County Real Estate Market

Mortgages and Mortgage Terms in the Southern Ocean County Real Estate Market

Mortgage Terms in the Southern Ocean County Real Estate Market
Mortgage Terms in the Southern Ocean County Real Estate Market

Mortgage Terms in theĀ Southern Ocean County Real Estate

Before you begin looking for your dream home, it is important to have an understanding of how much house you can afford and still lead a comfortable life. I often sit down with clients and review their finances even before a mortgage lender to give clients an understanding of their cash flow and if now is the right time to buy a home or if it is better to wait a year or two. In most cases, a mortgage will be needed to buy a house so Understanding a Mortgage in the Southern Ocean County Real Estate Market is key to buying a house in Stafford, Barnegat, Little Egg Harbor or the other areas of the local real estate market.

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What is a Mortgage?

A mortgage itself is a legal document that describes the loan, the terms of repayment and the interest rate. The mortgage will outline:

  • Principal: the amount owed on the mortgage
  • Interest Rate: the amount of interest charged each month (can be fixed or variable)
  • Term: the amount of time the mortgage will take to amortize (meaning the length of the loan (usually 30 years)).

It is important to understand all the aspects of a mortgage as it is a significant debt that you are obligated to repay. Before committing to a mortgage you should sit down and work out a monthly budget to make sure that the payments are affordable to you.

How to Qualify For a Mortgage

There are many factors that go into qualifying for a mortgage but a few are:

  • Current debt level
  • Amount of income
  • Credit rating

It is important to make sure that the amount of debt you currently have (credit cards, personal loans, student loans, car loans, etc) are affordable in addition to the debt created by a mortgage. This ties into your income as your income must support both your current debt and your mortgage payments. Lastly your credit rating will not only help you qualify for a mortgage but it can also influence the interest rate paid on the mortgage.

Buying a House in the Southern Ocean County Real Estate Market

It is important to understand the mortgage process and how much house you can afford before looking at homes. By understanding what you can comfortably afford, you are able to focus on the homes in your price range or understand what needs to be done to qualify for a larger loan.

The Beach Haven West Real Estate Group and Southern Ocean County Real EstateĀ SpecialistsĀ 

Farrah Pileggi 201-952-4131| Kim Pileggi 732-887-4853 | Nathan Colmer 609-290-4293

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