subject: Before Buying Miami Condos Some Mortgage Abcs [print this page] Before you look for Miami condos, you must first know the basics. You are about to travel a road most traveled but least completed. The real estate journey is a perilous one; full of challenges to test your patience and determination. And if you're a first-time buyer, make sure you know one of the most and probably the single-most important part of owning a home, the mortgage.
Mortgage
Mortgage is what you need to purchase Miami condos. If you can afford to pay full, you can do so; but that method is least advisable. Even if you can, doesnt mean you have to. Remember that you can spend that money for a lot of other useful purposes and probably save you some sanity in case of future emergencies.
Moving on; your mortgage is basically the loan you need to purchase Miami condos and real estate properties in general. The amount depends on several factors, including your credit history, score, DTI (Debt-to-Income Ratio), down payment, etc. The two basic parts of the mortgage is the principle and interest. The principle is the amount of the mortgage; while the interest is the money you pay the lender, well, because they lent you the money.
Lender and Broker
When buying properties, you can either go directly to the lender and transact or hire a mediator or a mortgage broker. The mortgage broker is a helpful addition to any real estate team. The broker will act as the liaison between you and the lender that will officially provide the mortgage. Your broker can also help you calculate the entire home-buying expenses, as well as guide you through the financial motions of real estate.
Title or Deed
Once you get the mortgage and owned the property, you have to hire a title company. This company will furnish your title or deed, which will serve as the proof of ownership. What you must know is that as long the mortgage exists, you dont necessarily own the property because the lender has placed a lien against the title. In case you default, the lender can repossess the property and sell it in order to recover their losses. So basically, the title is just paper unless you pay off the loan. But that doesnt mean you have to discard it keep the title securely along your important files.
Amortization
Lastly, in Miami condos ownership, homeownership and other kinds of real estate ownership, there is amortization. This is simply the repayment of the loan something you should be ready to be responsible for every month.
