Mortgage Law in Mississippi

In Harrison County, Mississippi, a mortgage is a special type of secured loan. A loan is "secured" when there is some type of property attached to it, which can be seized by the lender in case the borrower defaults. This, obviously, reduces the risk to the lender, and makes credit more available. A mortgage is a loan given to buy a piece of real estate, with that same real estate serving as collateral.

Mortgages are useful because they authorize a person to buy a house, or other larger piece of real estate, without having to pay the full price up front. Most people, obviously, don't have that kind of money on hand. Fortunately, many find it manageable to make monthly payments on the mortgage, plus interest, over a period of many years.

When you buy anything on credit, however, you are going to end up spending substantially more than the purchase price, because you have to pay interest. Obviously, a lender couldn't stay in business if it didn't charge interest on loans, this would cause it to (at best) break even on every loan it issued.

However, to many people, this extra cost is worth it. After all, without mortgages, few people would ever be able to buy homes, if paying out of pocket is the only alternative.

Getting a Mortgage in Harrison County, Mississippi

The most crucial factor in getting a mortgage on favorable terms in Harrison County, Mississippi is having a good credit rating. Credit ratings exist to make it easy for prospective lenders to assess a person's risk as a borrower. A good credit rating shows that you paid most or all of your debts on time, and are likely to continue to do so. A poor credit rating says the opposite, and will make it much more difficult to get a loan, and even if you do, the interest rate is likely to be much higher.

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 ensure that you have enough money saved up to cover the down payment on a house, if you are considering buying one. This will prevent the down payment from straining your finances too much.

You also need to be realistic about your budget. The fact that you're buying a house that you don't have to immediately pay for can tempt some people into taking on more debt than they can take. You need to make a full accounting of what the house is likely to cost, including the cost of the mortgage payments, property taxes, repairs and maintenance, and other fees.

Once all of your affairs are in order, the time to sign the mortgage agreement comes. Once the agreement is signed, the loan is final, and there's no going back. Well before this day, you should make absolutely sure that you clearly understand every single provision of your mortgage agreement, and the obligations it imposes on you.

Can a Harrison County, Mississippi Real Estate Attorney help?

Buying a home is not a decision to be made lightly. It is essential to obtain competent legal and financial advice before purchasing a home. To that end, a knowledgeable Harrison County, Mississippi real estate attorney should be consulted.