If you’re applying for home loans in Cape May, FL, familiarizing yourself with the industry can be advantageous. Learning industry jargon is particularly helpful when the day comes to sit with a lender.
So, here are some terms that may come in handy during your application for home loans in Cape May, FL:
Mortgage Amortization – the gradual payment of a mortgage loan scheduled in a specific payment interval (usually monthly). Payments throughout the loan term generally consist of principal and interest, specified on amortization schedules.
Closing Costs – are fees and expenses incurred in completing a real estate transaction, paid at the “closing” or settlement, the final step in the home buying (or selling) process. These costs can vary in a spectrum of disparities, influenced by several factors, including location, property value, and mortgage loan terms.
Home Appraisal – A professional assessment of the fair value of a property. In other words, this process allows you to know the valuation of a property; the findings should be unbiased; hence, a third party conducts it. Home appraisal is a requirement by lenders before they approve (or deny) a loan application to buy or refinance a home.
Debt-to-Income Ratio (DTI) – A risk assessment tool lenders use to evaluate a person’s capacity to manage their monthly debt obligations, helping them decide the latter’s eligibility for loans. They calculate it by dividing the total monthly debt payment by the gross monthly income, multiplied by 100 (expressed in percentage). Please note that the smaller the number, the better.
Mortgage Loan Originators – Financial professionals who help with successful mortgage loans to finance a home purchase or refinance a home property. As intermediaries connecting borrowers and lenders, they can help clients navigate the home loan application and approval process, which can be complex for those new to the industry.
Are you looking for a reputable company to help you obtain home loans in Cape May, FL? Look no further than Homeplus Mortgage.