Real Estate Attorney Long Island, Markotsis & Lieberman P.C., Answers The Top 3 Questions About Applying For A Mortgage
HICKSVILLE, N.Y., Dec. 11, 2019 /PRNewswire/ -- While a mortgage isn't always necessary – there are certain cases when one will purchase a home in full with cash – there are many reasons why it remains the most common payment method. Not only does a mortgage allow a homeowner to make payments in smaller installments, as opposed to one sizable lump sum, but it's been said that a mortgage generates better returns over time. Applying for a mortgage can be tricky, but it can be done with the proper insight. Real estate attorney Long Island, Markotsis & Lieberman P.C., answers the top 3 questions about applying for a mortgage.
"What types of mortgages are there?"
There are multiple mortgage types that future home and property owners should be aware of. A fixed-rate mortgage, which is the most common option, entails an interest rate that is set for the life of the loan. This means that there will be a set monthly payment that one is responsible to make. An adjustable-rate mortgage, as the name applies, is one where the interest rate adjusts at a certain specified interval or intervals. As a result, the monthly payments will almost certainly vary over the loan's term. Over time, one may consider applying for a second mortgage, an option that many property owners use for home-related purposes. These are just a few examples, but it's important for one to ask their real estate attorney about the different options. From there, the best mortgage option can be decided on.
"Does one require good credit to be approved for a mortgage?"
There are several factors that determine the likelihood of one's mortgage application being accepted. Credit score is important, as one would expect, but the requirement isn't terribly high. For example, it's possible to be approved for a mortgage with a credit score of 580. Consider that a higher score will net one a lower interest rate, which means that it's in a property owner's best interest to build their score over time. Other factors that determine mortgage approval include, but aren't limited to, proof of consistent income and information regarding one's assets, like bank accounts.
"If a mortgage cannot be paid, for financial reasons or otherwise, what steps should be taken?"
In the event that a mortgage can't be paid, as agreed upon, there are a few options that a real estate attorney will suggest. The easiest course of action would be to sell the property, ensuring that fewer late fees will be incurred. Refinancing is another possibility, as it helps one reduce their mortgage payments. Depending on the state of one's financial situation, it's also possible to rent space to an individual looking for a short-term living solution. This means of income can help one pay their mortgage until a more concrete strategy is decided on. Keep these options in mind in case an emergency arises.
About Markotsis & Lieberman
Markotsis & Lieberman, P.C. is a general practice law firm. Practice areas include real estate, litigation (commercial and civil), business formations, agreements and transactions, and wills, trusts and estates. Our team of seasoned attorneys are here to guide you through every step of the legal process providing personalized attention to every client. When you're facing a complicated legal situation, our team of legal experts is there to fight for your rights.
SOURCE Markotsis & Lieberman
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