How to Begin
Pre-Qualify: Contact Towne & Country Realty, Inc. for assistance in determining how much lenders are likely to advance toward the purchase of your new home. You may use the Mortgage Calculator on our web site to obtain a preliminary non-binding estimate.
Secure the Services of a Qualified Agent: Typically, in this market, the cost of agency services are paid by the seller. The listing agent is, therefore, an agent or representative of the seller and is working in the best interest of the seller. By securing the services of a buyer's agent, in most cases at no cost to the buyer, you will have the services of a qualified agent working in your best interest. Towne & Country Realty, Inc. welcomes the opportunity to discuss with you buyer's agency.
Making an Offer: Your buyer's agent will assist you in locating, negotiating the price, and making an offer on the home of your choice. To search for properties online, see our featured listings and our property search.
Ownership: Home ownership is often the largest single investment individuals make. Towne & Country Realty, Inc. is in business to assist you with the home buying process.
After you have determined how long you expect to stay in your new home, the amount of down payment you can afford and the number of years of the mortgage loan, you are ready to explore the different mortgage loan options that are available. While the best source of information on mortgage loans is a professional mortgage loan officer, a basic understanding of the different types of mortgage loans can save you time and expedite this part of the home buying process. Mortgage Loan Options The following descriptions of different types of mortgage loans may be helpful and are provided for general information only. The descriptions provided are not legal definitions and should not be taken as all inclusive or as a description of a specific mortgage loan. Consult a professional mortgage loan officer before making a decision as to the appropriateness of any mortgage loan. • Fully Amortized Fixed-Rate Mortgage: This is the most widely used type of mortgage loan. The monthly payment is a constant amount with the lender first crediting the payment to the interest due with the balance applied to reduce the principal of the loan. With each succeeding payment the part of the payment needed to pay interest decreases, while the amount of the payment applied to the principal increases. • Partially Amortized Fixed-Rate Mortgage: The monthly payment is a constant amount, however the monthly payment amount is not enough to completely payoff the principal during the term of the loan. At the end of the loan term, a final payment, called a balloon payment, in the amount of the remaining principal is due. The final (balloon) payment amount is greater than a regular monthly payment. • Straight-line Amortized Mortgage: The monthly payment amount may change with each payment. The monthly payment consists of a fixed amount credited to principal each month and payment of interest due on the principal balance. The interest due each month decreases as the principal decreases. • Interest-only Mortgage: An interest-only mortgage requires payments of interest only with the principal due at the end of the term. An interest-only mortgage is also called a term loan. Interest-only mortgages are most often used for construction loans and second mortgages. • Adjustable-rate Mortgage: With an adjustable-rate mortgage, the interest rate fluctuates up and down with changes in an interest rate index. Interest rate changes are often limited to a maximum number (often one) each year and a maximum number over the term of the mortgage. In general, adjustable-rate mortgages allow borrowers to repay the loan in full without penalty when interest rates change. • Graduated Payment Mortgage: A graduated payment mortgage provides for lower payments in the early years of the loan and larger payments in the remaining years of the loan term. Interest rates are fixed during the loan term. This type of mortgage loan is based on the assumption that the borrower's income will increase over time thus a larger payment can be made. While all lenders do not offer all of these mortgage loans, some lenders may make available variations of these or other mortgage loan options. Consult a professional mortgage loan officer for specific information about available mortgage loans.
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