Mortgage Law in Mississippi
In Oxford, 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.
But several 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 Oxford, Mississippi
If you want to get a mortgage in Oxford, Mississippi, it's necessary that you have a well-established history of good credit. Credit ratings are used by lenders to estimate how risky a prospect a borrower is. If you have good credit, you'll have a much better shot at getting a mortgage with a reasonably low interest rate. If you have bad credit, you might be unable to get a loan at all, and if you do, the interest rate will be much higher, to account for the higher risk.
Most lenders will require you to provide a down-payment before they issue a mortgage. This is a particular percentage of the purchase price that you have to pay upfront. When considering buying a house, you should ensure that you have enough money saved up to more than cover the down payment, so making it doesn't put a huge strain on your finances.
Also necessary is realism about your finances. Credit is a strange thing - it allows people to buy things that they could never pay for on their own. Some people are tempted by the siren song of credit into buying far more than they can afford. This can happen when buying a house, as well. When buying a house with a mortgage, you need to make sure you know how much it will actually cost, and how much you'll be paying each month. And mortgage payments aren't the only expenses associated with owning a home. There are homeowner's association fees, property taxes, and the cost of maintenance.
Once you're ready to close the deal, you will have to sign all of the mortgage and sale agreements. This basically makes everything final, so it's necessary that you have a good understanding of every provision of the agreement long before you get to this point. This is definitely an area where surprises are not desirable.
Can a Oxford, Mississippi Real Estate Attorney help?
Taking out a mortgage and buying a home isn't a trivial matter, and might be the most important financial decision a person makes. A brilliant Oxford, Mississippi real estate attorney can ensure that this goes as smoothly as possible.