Mortgage Law in Oregon

Mortgages are a certain type of secured loan, where the security is the piece of property bought with the loan. In Florence, Oregon, most mortgages are taken out to buy houses. The seller of the house is paid by the bank, and the buyer, in exchange, agrees to pay the bank back in installments, with interest. If they refuse to make these payments, the bank can seize the house.

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

When you buy something 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 various 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 Florence, Oregon

When trying to get a mortgage in Florence, Oregon, 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 majority of lenders require a down payment on any mortgage. This is normally represented as some percentage of the total purchase price. Lenders require this to show that the borrower is financially solvent, indicating that they are typically responsible with their money. You should ensure that you have more money than the required down payment saved up, so that making this payment doesn't hurt your financial situation.

Another necessary factor is having a good understanding of your own finances. This is less common than you might think. You should make sure that the purchase price of the home, and the resulting mortgage payments (along with property taxes, fees, and inevitable repair costs) are well within your budget. If they aren't, you should opt for a cheaper house, or wait until you have a higher income.

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 completely sure that you clearly understand every single provision of your mortgage agreement, and the obligations it imposes on you.

Can a Florence, Oregon 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 seasoned Florence, Oregon real estate attorney can ensure that this goes as smoothly as possible.