Mortgage Basics for Millennials

Wondering how to get the best mortgage? What the “best” mortgage means? What a mortgage even is? Despite being one of the smartest and hardest working generations, a lot of us millennials find ourselves feeling out of our depth when it comes to things like lending and mortgages and owning property.

Luckily, it’s not all as scary as it sounds. We’ve gathered here some of the basics you need to know to be approved for your first mortgage.

Let’s jump in.

What exactly is a mortgage, anyway?

A crud
e way to put it is that a mortgage is essentially a kind of loan where a bank agrees to buy a house and let you live there while you slowly pay them for it. Once the entirety of the mortgage has been paid, you then own the house.

To put it with a little nuance, a mortgage is a loan where the value of your house is collateral. Collateral is somewhat like bail, except that instead of giving money to the police that you’ll lose if you break your promise and don’t come back, you agree that a bank can take something valuable (your house) from you if you break the deal and stop paying them.

So that’s foreclosure?

Yup. When a bank forecloses on you, your house is no longer considered to be your property and instead now belongs wholly to the bank. It’s their way of trying to make up the money they lost when you stopped paying your loan back.

Gotcha. I’ve picked out this house I like. Mortgage, please.

Whoa, slow down there imaginary reader. First, you need to be approved for a mortgage by a bank. That’s easier said than done, but if you have a good job and strong credit, it isn’t too bad. Banks care about a few different things when they look at your application. Here’s the information you should have:

• Your monthly income
• Your monthly debt payments
• Your credit score
• How much money can put down

With these in hand, you’re in good shape to apply for a mortgage.

What bank should I apply to?

Begin the Free Approval Express Process Today

Glad you asked. Here at Choice Mortgage Group Emmanuel St. Germain, we’re ready to help you get approved for a mortgage in no time at all. Call us at (561) 362-8204 today to begin the free approval express process.