The term mortgage cycle can be understood as a process of mortgage run from the initial stage of application till the time you are done with repayment. Choosing a mortgage plan is one of the most significant decisions you take in your life because it needs you to stand responsible for every single payment made to the closing. Every mortgage scheme has its very own terms and conditions to follow but one thing which stays the same for all is the life cycle of a mortgage. However, when you are informed about the Mortgage Cycle Process, it makes it very easy for you to deal with every process that takes you to the payments and enclosure.
The Application
The first and very important phase of the mortgage cycle begins with the application of loan. However, it is very likely that any person about to purchase some kind of mortgage plan, they may explore the various schemes and interest rates available in the market. The actual processing of application begins only when you sign the application and submit it to the loan officer to consider your form.
The Process Phase
After the successful submission of the application, the processing of the application is initialized. In this, the broker or bank checks your credit report and income to know about any risks of accepting the application. They will ensure that you satisfy all the requirements for loan approval which may also include approaching another investor in case the loan amount is heavy for the primary investor.
The Closing
When your application and your existing financial condition is reviewed, the process of closing is started. When you are done with the closing, you may have to pay some additional cost for inspection, attorney fees, insurance etc. once done with the closing, you may need to go through some post-closing steps like selling off the loan portions by your lender to offset the closing costs in Maryland. But that does not have to do anything with the payments as you have to pay a particular sum of money each month.
The Repayment
Last but not least is the repayment phase and it is the longest part of the Mortgage Cycle that can last for 30 years. During this tenure, the common responsibilities which you have to manage include making payments, maintaining insurance, paying taxes, and any other cost related to the loan agreement. Either you make full or double payments each month to repay, once done with the complete payment of loan amount you are free from the lien over the property.
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