Mortgage Law in New York

In Suffern, New York, 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 issued to buy a piece of real estate, with that same real estate serving as collateral.

Getting a mortgage isn't exactly a minor decision. In fact, it's one of the most important decisions that many people make. However, if you decide that a mortgage is right for you, it can make it possible to buy a home where it would otherwise be impossible.

Of course, purchasing anything on credit, including purchasing a house with a mortgage, will cost the buyer more in the long run than paying the full price up front, because buying on credit requires the payment of interest - this is how lenders make a profit.

But several individuals and small businesses find that this cost is worth it. If you're certain that you can make the payments, the tangible and intangible benefits of owning a home might outweigh the price.

Getting a Mortgage in Suffern, New York

The most crucial factor in getting a mortgage on favorable terms in Suffern, New York 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.

Most lenders will not issue a loan without a down payment. The down payment required will usually be measured as some relatively small percentage of the purchase price of the home. However, considering the prices involved, this could translate to a fairly large sum of money. Before taking out a mortgage, you should ensure that you have enough money saved up to make a down payment, and then some. This will show lenders that you are responsible with your money, and ensure that the down payment puts a minimal strain on you finances.

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 handle. 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 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 essential 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 Suffern, New York 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 good Suffern, New York real estate attorney can ensure that this goes as smoothly as possible.