Mortgage Law in Arizona
In Glendale, Arizona, a mortgage is a loan given to purchase a specific piece of property - usually a house - with the property being purchased with the loan serving as collateral for that same loan.
Taking out a mortgage and buying a house is not a decision to make lightly. Nonetheless, mortgages serve some very useful purposes. Because houses are so expensive, it's impossible for most people to buy them by paying the whole price upfront. A mortgage ensures that the seller gets paid immediately, and that the buyer is able to pay the purchase price over a long period of time, in manageable installments.
Buying something on credit creates further costs. Because lenders make their money by charging interest on loans, borrowers end up paying far more than the purchase price when they buy a house (or anything else) on credit.
But numerous home buyers think that a mortgage is worth the extra cost it imposes. After all, it wouldn't be possible for most people to buy homes if they had to pay for the whole thing up front.
Getting a Mortgage in Glendale, Arizona
When trying to get a mortgage in Glendale, Arizona, it's necessary that you have a good credit history dating back as far as possible. The better your past record of paying back loans, the more likely a bank is to assume the risk of loaning you hundreds of thousands (or more) dollars to buy a house.
The vast majority of lenders will require a down-payment before issuing a loan. This is some up-front payment that represents a percentage of the purchase price. You should confirm that you have enough money saved up to cover the down payment on a house, if you are considering buying one. This will keep the down payment from straining your finances too much.
It's also necessary to be realistic about your financial situation when calculating monthly payments. Obviously, a more expensive house will result in higher mortgage payments. While buying a house on credit may tempt you to get something more expensive than you can really afford, you should resist this temptation. Having a big, expensive home won't count for much if you can't make the payments, and it gets foreclosed. You should make a reasonable accounting of the expenses associated with home ownership. This includes mortgage payments, property taxes, and others.
When you have researched the issues completely, the time to finalize the mortgage agreement. When this happens, the deal is pretty much final, and cannot be undone. Therefore, you should make sure you know exactly what you're getting into before you reach this point.
Can a Glendale, Arizona Real Estate Attorney help?
Because of the gravity of the decision to buy a house, and the complexity of some of the issues incorporated, it is never a bad idea to seek the help of a Glendale, Arizona real estate attorney if you have any questions whatsoever.