The process of getting a mortgage can be mentally taxing and can be very emotional as well. You want to cover all your bases as you're committing to a property and a loan that you have to live with for some time. We're here to make your journey easier. You're welcome to learn at your convenience from all of our online reading materials but don’t forget that we are available to answer any question that you have about your mortgage search. You can reach us anytime by phone at (954) 972-7100 or by Email at: Contact Us

We’ve put together this collection of short paragraphs, which we call 'The Anatomy of a Mortgage' to help explain the basics.

PITI - A mortgage payment generally consists of four elements:

P – Principal - The original amount of the money borrowed from a lender.
I – Interest - A fee charged for borrowing money.
T – Taxes - Property taxes paid to your local government.
I – Insurance – Homeowners insurance on your property.

Mortgages

Adjustable – An ARM (Adjustable Rate Mortgage) has an interest rate that will be adjusted up or down according to current interest rate levels. The monthly amount for your principal and interest payment will go up or down based on these interest rate changes

The Down Payment

Many people believe that they need to put down 10 percent or even 20 percent for their down payment and that’s no longer true. There are many lenders that have loan programs that require 5 percent or less, including zero down. Way back when, the only zero down loans were from the Veterans Administration but fortunately those days are gone. If you think that you have to pay rent until you save up a 10 or 20 percent down payment, check with us. You’ll be pleasantly surprised.

Pre-qualification

You will want to get pre-qualified during your mortgage search. Pre-qualification isn’t binding but rather it gives you a ballpark idea of what you can afford. The lender analyzes your income, debt and credit history to estimate your maximum loan amount. Combine that with the money you have for a down payment and you have your maximum home price.

Pre-approval

The next step is pre-approval which verifies your income, debt and credit. Pre-approval gives you the following benefits:

• Knowing exactly what you can borrow. You will have an accurate commitment from your lender for the amount you can borrow.
• Credit problem solving. You will know now, instead of while your offer is being evaluated by the seller, if you have any credit issues to be dealt with.
• Stronger negotiating position. Sellers love pre-approved buyers. They know your offer will not fall through and will treat you like the proverbial bird in the hand. This can help you negotiate a better price.