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Featured Paonia-Crawford- 
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Mortgage InformationThe first step in buying a home is to talk to a lender and get pre-qualified for a mortgage, BEFORE you start looking. A lender can help you decide how big a house payment you can afford. A lender should also estimate closing costs and total cash (including down payment) that you will need to buy a property. This information will help you set a price range that you can afford when looking for property, and you won't waste time looking at homes you can't afford. A pre-qualified buyer is also more likely to be chosen by a seller when making an offer on a property. What is a mortgage? In a typical real estate transaction, the buyer seeks to borrow money to pay the seller the difference between the down payment and the purchase price. When the lender (the mortgagee) lends the money, the buyer (borrower) is required to sign a promissory note for the amount borrowed and to execute a mortgage to secure the debt. The purpose of the mortgage note is to create a personal liability for payment on the part of the borrower. The mortgage creates a lien on the mortgaged property as security for the debt. A valid mortgage is both a debt and a pledge. The word "mortgage," comes from the French words mort meaning "death" and gage, meaning "pledge". When you pay off a mortgage, the debt has died, and thus the pledge is fulfilled. Think long-term. Is this your first home, or are you moving closer to where you work? How long do you plan to stay in the new house? Do you need to sell your home before you purchase a new home? This decision may dictate what type of home you'll buy as well as the type of mortgage terms that suit you best. Your monthly payment will typically consist of loan principal, interest, insurance, and property taxes. Generally the loan payment should be no more than 25% of gross income. All debt combined, including your home loan, should be no more than 33% of your gross income. Your lender may be flexible on these ratios. Closing costs typically include: loan origination fee, appraisal, credit report, escrow fee, title insurance and recording fee. Closing costs on a $150,000 standard conventional mortgage loan, for example, generally total around $3,500. Today many lenders can find 100% loans for qualified first time home-owners. While this is a great way for young people to obtain a starter home, don't fall into the trap of buying the largest home you can afford, with no money left for upkeep, furniture and landscaping. Lenders can be found everywhere, from the Internet to your local bank. There is an advantage in working with a lender that your Realtor recommends, a lender who lives and works in the area that you wish to move. Using one of our preferred lenders is an advantage because a local lender is familiar with Colorado's Buy/Sell Contract and the importance of the dates and deadlines in that contract. When you make an offer on a house, you will have a certain amount of time to get final loan approval. If your lender doesn't cooperate in a timely manner, it can put your earnest money at risk. Contact Bob and Linda Lario today for Colorado Ranch Land, Mountain Homes and Land, and Real Estate Acreage in Western Colorado! 
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Office: 970.527.7759 Toll Free: 800.571.7670 
Featured Listing  $123,900 Paonia, CO 81428 3 Beds, 1 Baths One story, wood construction with Concrete foundation. |
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