Understanding Mortgage & Title

MortgageUnderstanding Mortgage

A common misconception to the real estate transaction process is that obtaining a mortgage to purchase your dream home is as simple as a good credit rating. While your credit rating does play a significant role, it is only one of many considerations your loan officer will request. As a consumer, here are a few concepts/terms you should be familiar with:

  • Pre-approval where a lender provisionally approves you for financing to buy a home
  • Difference between interest rate and APR
    • Not all rates are equal, the length of a loan can dictate the rate
    • Rates can be fixed or variable (ARM – Adjustable Rate Mortgage)
  • Mortgage loans come in all shapes and sizes
  • Existing debt-to-income ratio
  • Points – interest rates, origination, and processing fees can be discounted by ‘points’ (fee paid to lender at closing)
  • Private mortgage insurance, also known as PMI, is required to protect your lender when your conventional loan is greater than 80% of the property/residence to be purchased

Whether you are an experienced or first-time home buyer, obtaining a mortgage can be a daunting task. Please reach out to a Century21 Rauh and Johns sales associate to provide you with professional guidance. As a subject matter expert, your agent not only has the experience of the #1 Century21 brokerage in NJ, they have the backing of their preferred partner Finance of America – Sewell NJ branch.

Understanding TitleUnderstanding Title

In the world of real estate, the title identifies property ownership and is recorded and available in county public records and appropriate government agencies. The title to your home identifies legal ownership, title insurance provides protection from possible defects in title.

Title, title insurance and settlement services can appear overwhelming to even the most experienced buyer. At Century21 Rauh and Johns, our sales associates bring a wealth of knowledge in all facets of your real estate transaction processes. As a preferred partner, Marketplace Title, LLC expertise combined with your agent skillset and resources will guide you thru title, title insurance and settlement services.

Please reach out to a Century21 Rauh and Johns sales associate to provide you with professional guidance.