A Reno, Nevada mortgage is a lien placed on a piece of real estate by a lender to secure a loan. The loan is usually for the purpose of buying the home that serves as the security. The vast majority of U.S. homebuyers use a mortgage to finance the purchase. This is usually the only viable option, as most people don't have enough cash on hand to cover the six or seven figure price of most homes.
Of course, buying anything on credit in Reno, Nevada costs more in the long run than the purchase price, since lenders make a profit by charging interest on their loans. However, for many people, this is a fair tradeoff for the ability to buy a house.
How Can I Get A Mortgage in Reno, Nevada?
Most Reno mortgages are obtained from lending institutions such as banks. When applying for a mortgage, you should have certain information ready, including a credit report, documentation of your current income, and an accounting of your assets and debt. In Reno, Nevada, the lender will almost certainly require a down payment before extending credit. This is to show that you likely have enough money to pay the mortgage, and to mitigate some of the lender's risks. You should make sure to save up more money than the down payment amount before buying the home.
It could take anywhere from a few days to several months before your mortgage is approved. Accordingly, you should plan ahead. There are different types of interest rates attached to mortgages in Reno, Nevada. Fixed interest mortgages start with one interest rate, and will always have that same rate throughout the life of the loan. This makes the actual cost of repaying the mortgage fairly predictable.
There are also adjustable rate mortgages, which allow the lender to change the interest rates. These usually start with a much lower interest rate than a fixed-rate mortgage, but which might eventually increase significantly later in the life of the mortgage. These different systems have their own advantages and disadvantages, and you should speak with a financial adviser to see which one is right for you.
How Can A Reno, Nevada Mortgage Lawyer Help?
For the majority of home buyers, the decision to buy a house is one of the most important that they will make in their lifetime. It should not be taken lightly. It might be prudent to speak with a Reno, Nevada real estate attorney if there is any term in the mortgage that you don't understand, or if you believe the terms of the mortgage have been breached by the other party.