Mort­gages 101: How to choose a lender, and ap­ply for a Mort­gage

Sun Sentinel Broward Edition - Homespot - Broward East - - REAL ESTATE Q&A LIVING G SPACES - By Samantha ( Sam) DeBianch

Q.

How do I find a lender? A.

Shop ‘till you drop. Or, at least un­til you find the best price. Just like any­thing else, you al­ways want a great deal and the best op­por­tu­nity pos­si­ble, so make sure to check in with ev­ery av­enue which in­cludes mort­gage bro­kers, banks, and var­i­ous state govern­ment lenders.

If you take the time to an­a­lyze num­bers and com­pare, it can re­ally end up sav­ing a sub­stan­tial amount in the long run. Your lender will be a part of your en­tire home-pur­chas­ing process; so aside from get­ting a “great deal,” it’s im­por­tant to feel com­fort­able and con­fi­dent with them. Q.

What does my mort­gage cover? A.

You may have heard the term PITI, which is: prin­ci­pal, in­ter­est, taxes and in­sur­ance; and what you pay on a monthly ba­sis.

Your prin­ci­pal is the amount you ac­tu­ally bor­rowed.

Your in­ter­est is the pay­ment to the lender for the amount that you bor­rowed.

Taxes are cov­ered in your mort­gage, which are di­vided out through your an­nual mort­gage pay­ments (which makes things eas­ier for you at the end of the year).

And lastly, your mort- gage cov­ers your in­sur­ance, which can pre­vent you from the un­ex­pected such as en­vi­ron­men­tal el­e­ments, nat­u­ral dis­as­ters and theft. Q.

What do I need to ap­ply for a mort­gage? A.

When ap­ply­ing for a mort­gage, you’ve got to show what you’ve got. Lit­er­ally.

Aside from your so­cial se­cu­rity num­ber, be pre­pared to have copies of your check­ing and sav­ings state­ments for the past six months; a list of credit card ac­counts with bal­ances owed; a list of loans such as car pay­ments, fi­nan­cial aid, etc.; state­ments of as­sets such as stocks and bonds; re­cent pay­check stubs; copies of your two last years’ in­come state­ments; and con­tact in­for­ma­tion for cur­rent em­ploy­ment ver­i­fi­ca­tion.

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