What is a Mortgage?
A mortgage is a loan secured by real estate, in other words if the borrower defaults the lender will receive the land in lieu of payment.
What is a mortgage? We can break mortgage down into “Mort” and “gage” which are both Old French words meaning “dead pledge” but DON’T worry! It is not referring to the death of the borrower, rather it is focused on the termination of the loan either by payment in full or missed payment.
A mortgage is a loan secured by real estate, in other words if the borrower defaults the lender will receive the land in lieu of payment
What is a mortgage in reference to today’s financial tools?
A mortgage is a loan secured by real estate meaning when a lender puts up the money needed to purchase property, they can rest assured that they will either be paid according to the agreement or they will take possession of the property. Think of it like a car loan, when somebody gets a car loan they agree to make monthly payments and if they don’t, the car gets repossessed.
How do you get a mortgage?
The process generally starts with a Mortgage Loan Originator: “Hello, I’m Kyle Murnane, Mortgage Loan Originator NMLS# 2064901.” The numbers after my title let you know that I have registered with the Nationwide Multistate Licensing System and to do that I was required to complete extensive training and pass multiple tests.
The duties of a Mortgage Loan Originator
My job to my boss is to make sure that you fit the parameters set forth by Federal law, State Law and our Institution’s rules, however my job and responsibility to YOU as my client is to go the extra mile and ensure your comfort with the chosen path. There are instances where you qualify on paper but with extenuating circumstances like you know you’re being reassigned to England next year, that maybe you would be better off waiting to purchase.
The Standardized Mortgage Application
Once we determine that buying a house is in your best interest, we dive into the hard facts and fill out what we call a “1003” or “ten-oh-three” which is the standardized Mortgage Application. We go over your current living arrangement, your employment, your assets, etc., and we collect supporting documentation. We check your credit, comes back great and voila, your income, credit, cash to close, etc., has checked out and you are ready to meet your Realtor with Pre-Approval in hand.
Next Steps in the Mortgage Process
After your offer is accepted, then we focus on the appraisal, any miscellaneous supporting docs, any requirements that may have popped up.
Article by Kyle Murnane, Realtor and Licensed Mortgage Loan Originator
Questions? Feel free to reach contact me! I continue to build connections throughout the region, so if I don’t have the perfect answer for your exact market, I can put you in touch with a professional who does. I’m ready for your call!