Mortgage Facts
The time it takes to complete the loan process varies for each application. Remember that completing your application accurately and fully will help speed the process.

Owning a home and having a mortgage creates a whole new world of tax deductions that are beneficial to you!

By having a mortgage you can deduct some of the items below:
  • Real estate taxes
  • Mortgage interest
  • Points paid to lenders
  • Many other deductions
What You Should Know
Here is a list of the stages required to process a mortgage.
  • Make a Mortgage Application
  • Get an appraiser to judge the value of your property
  • Verify your credit
  • Verify income
  • Asset verification
  • Various other verifications
  • Underwriting for your final determination
  • Then you go to closing
If a manís reach does not exceed his grasp, then whatís a HEAVEN for?
- Robert Browning
Key Terms
  • Adjustable rate mortage (ARM) -
    A loan with an interest rate that can be changed periodically based on the current economic climate
  • Amortization -
    The length of time that the principal balance is determined for repayment.
  • APR -
    A federally required formula to supposedly help the owner compare costs of credit.
  • Assessed Value -
    What your local municipality deems the value of your property is for tax purposes.
  • Commitment -
    A pledge by the lender to provide the mortgage.
  • Equity -
    The gap between what you owe and the fair market value of your property.
  • Escrow -
    The combination of taxes and insurance configured on a monthly basis.
  • Points -
    Prepaid interest. One point equals 1% of the loan amount.
  • Private Mortgage Insurance -
    Insurance to cover the lender in case of default.
  • Title Insurance -
    Insurance that protects the lender and the buyer against anything unclear on the property deed.
  • VA -
    An agency of the government that helps make it possible for qualified veterans have the eligibility to have long term low down payment loans.
  • * Other definitions available upon request.