Essay on The Process of Obtaining a Home Mortgage

To begin this executive summary, we first look at the issue of research. In our semester project we are discussing the steps one would take in order to get a home mortgage. The reason we have chosen to do this project is to see how one goes about not only becoming approved for a loan but also how to service your mortgage and keep it up to par. The sources that we used in obtaining this information were sources that were able to help educate us on home mortgage and also help us further understand the entire process. The web-site www.mortgage-x.com was to me the most useful in our research. This site provided thousands of articles on the issue, a glossary and dictionary to help us in our search, and also provided a number of links†¦show more content†¦As soon as the closing of the mortgage is complete, the mortgage is put on the books at the financial institution and they begin to service the mortgage. In the mean time the borrower begins to make monthly payments to the financial institution to pay back the mortgage amount. The third and final main finding that we came across was the sale of the mortgage in the secondary market. The financial institution may sell the mortgage to another institution in the secondary market. The primary business of these secondary markets is servicing mortgages. Examples of these secondary markets are Fannie Mae and Freddie Mac. When servicing is sold the secondary market investor will begin to take your payments. If the financial institution intends to sell your mortgage they are required to give the borrower a mortgage service disclosure statement. The sale of the mortgage does not affect the terms of the mortgage at all. At this point the borrower will only deal with the secondary market institution. At this time we cannot really give a specific recommendation for action. The reason for this is the action one would take in getting a home mortgage would all depend on the size of the mortgage and whom they would want to deal with. Mainly, a person needs to find a financial institution that he/she is comfortable dealing with. Table of Contents 1) Introduction 1 2) Obtaining a Mortgage 1 A) Approaching theShow MoreRelatedBuying A Home Right Away798 Words   |  4 Pagesare looking to purchase a home right away or you will not be ready to buy one for several years, if you have not already started, now is time to start preparing financially to buy a home. To aid you in the process of preparing financially for your home purchase, we would like to offer five financial tips. Build Strong Credit It is important to know that your credit score will affect your mortgage rate. A low score will make it hard and sometimes impossible to buy a home. 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